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Commons Chamber

Volume 180: debated on Wednesday 25 February 1925

House of Commons

Wednesday, February 25, 1925

The House met at a Quarter before Three of the Clock, Mr. SPEAKER in the Chair.

Private Business

Private Legislation Procedure (Scotland) Act, 1899

The CHAIRMAN OF WAYS AND MEANS reported, "That, after conferring with the Chairman of Committees of the House of Lords, for the purpose of determining in which House of Parliament the respective Bills introduced pursuant to the provisions of the Private Legislation Procedure (Scotland) Act, 1899, should be first considered, they had determined that the following Bill should originate in the House of Lords, namely:—

Standard Life Assurance Company (substituted Bill)."

Report to lie upon the Table.

Gas Light and Coke Company Bill (by Order),

Read a Second time, and referred to the Examiners of Petitions for Private Bills.

Oral Answers to Questions

Questions

Mexico

asked the Secretary of State for Foreign Affairs whether he will consider the advisability of giving full recognition to the Mexican Government, so that normal trade relations may be resumed with that country, in view of the fact that such recognition has been extended by the other great Powers, and that Great Britain is concerned to the extent of £150,000,000 in Mexican investments?

I would refer the hon.

Member to the answer which I gave on 17th December last to the hon. Member for Chester-le-Street (Mr. Lawson) in reply to a question on the same subject, of which I am sending him a copy. No change has occurred in the situation since that date.

Peace Treaties

Inter-Allied Military Mission of Control

asked the Secretary of State for Foreign Affairs if he will state what is the reason for the delay in the publication of the Report of the Inter-Allied Military Commission of Control?

The hon. Member's question is based on a misapprehension. There has, in fact, been no delay. The Report, which is very voluminous, was only received by the Inter-Allied Military Committee at Versailles, to whom it was addressed, on the 18th of February. It is the duty of that Committee to consider this Report and to submit their own comments to the Ambassadors' Conference, who will report to the Allied Governments. The question of publication is one which must be decided by the Allies in consultation. I do not at present desire to express any opinion upon it, beyond saying that I conceive that the object of the Allies must be to obtain the fulfilment of those provisions of the Treaty of Versailles on which by the terms of that Treaty, the reduction of the period for the occupation of the Cologne area is made to depend. If this be so, it would appear that the expediency or otherwise of publication will depend upon whether publication would or would not facilitate the satisfaction of the Allies' just demands, and consequently the evacuation of the Cologne area.

Inasmuch as it has been repeatedly stated that the Germans are in default under their Treaty engagements, is it not desirable that the specific charges of default should be made public?

I have given a carefully considered answer, and I think it inexpedient to argue about it at this stage with the hon. and gallant Member.

asked the Secretary of State for Foreign Affairs whether he will have the Report of the Inter-Allied Military Mission of Control dealing with the failure of Germany to fulfil the disarmament clauses of the Treaty of Versailles circulated in the House, and this at the earliest possible moment; and, if he cannot see his way to circulate the Report as a whole, will he have circulated in detail the precise grounds of complaint upon which the Allied Governments based their decision to suspend the operation of Clause 429 of the Treaty?

I would refer the hon. Member to the reply given to-day to the hon. Member for Middlesbrough West (Mr. T. Thomson).

Rhineland (Occupation)

asked the Secretary of State for Foreign Affairs whether any decision has been arrived at as to the date at which the five years mentioned in Article 429 of the Treaty of Versailles began to run?

The date is fixed by the Treaty of Versailles itself. The provisional periods mentioned in Article 429 are governed by Article 428, which lays down that the Rhineland shall be occupied for a period of 15 years from the coming into force of the Treaty. In accordance with the procedure laid down in its final article, the Treaty came into force on 10th January, 1920. His Majesty's Government have never admitted that the date of evacuation could be called in question.

Attached Property

14 and 46.

(1) asked the Secretary of State for Foreign Affairs whether, in relation to the charging clauses of a permissive character contained in the several Peace Treaties concluded at the end of the Great War, authorising the attachment of the private property in this country of individuals of enemy nationality to answer the obligations of ex-enemy states, he has considered the inadequacy of the indemnity furnished by such enemy states and, in particular, that Germany limits the recoupment of its nationals whose property has been so attached and confiscated by His Majesty's Government to £2 per £1,000 so forfeited, whereby German nationals have in many cases been reduced from comparative opulence to destitution; whether he is aware that under the Winslow Act (1923) the Government of the United States of America has released all charges up to 10,000 dollars and that a Bill is now before Congress for the total cancellation of the confiscatory clauses; and, if so, will he consider whether, by extending the powers of Lord Blanesburgh's Committee, he can bring about an amelioration in extreme cases;

(2) asked the Prime Minister whether his attention has been called to the insufficiency of the instructions given to the Committee presided over by Lord Blanesburgh, and to the recommendations made by such Committee in their interim and special Reports, with reference to the inadequacy of the scope of such instructions to enable them to mitigate the sacrifice entailed upon individuals of enemy nationality whose property has been attached under the provisions of the several Peace Treaties; whether he is aware that, under the operation of these Treaties, persons whose property has been so attached have been reduced from relative opulence to destitution, and that by reason of the inadequacy of their powers. Lord Blanesburgh's Committee are unable to make such orders as are necessary to relieve their extreme want; and whether he will consider the advisability of increasing the powers of the Committee so as to enable them to make such orders as will relieve these persons from the position in which they are placed by the attachment of their property?

The answer is somewhat long, and, if my hon. and learned Friend will permit me, I will have it circulated in the OFFICIAL REPORT.

Is it proposed to make any alteration to meet the request of Lord Blanesburgh's Committee?

If the right hon. Gentleman awaits receipt of the replies which I am sending to him, he will be fully informed.

Will the hon. Gentleman take into account that there is a good deal of feeling on this matter in the country?

Following is the reply :

The recommendations made by Lord Blanesburgh's Committee in their special Report of 24th December, 1923, were accepted early in 1924 and are being carried into effect. I would remind my hon. and learned Friend that any release of property so charged is by way of indulgence; that the ex-enemy Governments have been permitted to retain the proceeds of the property of British nationals which they liquidated during the War and the pre-War debts owing to British nationals which they have since collected, and that they are under an obligation to pay compensation to their own nationals whose property has been charged in the Allied countries. There has been no confiscation on the part Of His Majesty's Government. The proceeds of the German property realised by the British Custodian are duly accounted for to the German Government, and if that Government does not pay proper compensation to its own nationals, that is not a matter for which His Majesty's Government can be held responsible. I am informed that the German Government have under consideration proposals for a considerable increase in the amount of compensation paid by them to their nationals. I am aware of the United States legislation as regards enemy property but the circumstances in that country are entirely different, and in any ease, for the reasons stated, I cannot consider any further extension of the powers of Lord Blanesburgh's Committee.

asked the President of the Board of Trade whether he seek competent advice to ascertain whether the provisions of the charging Clauses of the several peace treaties whereby the property of individual subjects of ex-enemy countries deposited in Great Britain are confiscated are or are not opposed alike to the common law of this country and also to international law; and whether he will set up a Committee of this House to consider as to the expediency of reviewing the operation of such orders and their effect on the established principles of domicile and the right to hold property free from confiscation, as to the injury to the credit of this country abroad resulting from the absence of security of investments held here whets subject to confiscation at the instance of the State without reference to the rights of the owners, and the desirability of re- viewing, revising, limiting, or otherwise amending the provisions of such charging Clauses so far as regards their administration?

In reply to my hon. and learned Friend, I desire to point out that there has been no confiscation of ex-enemy private property by the British Government. Under the provisions of the Treaties, the proceeds of sale of ex-enemy property in British territory are cleared against similar proceeds of British property in ex-enemy countries, and the opposing Governments are thereby put into a position to account to their respective nationals for such proceeds. His Majesty's Government has adhered to the above provisions, and has rendered strict account to the opposing Governments of the property of their nationals in British territory, and it can accept no responsibility for any failure of ex-enemy Governments to comply with the Treaty provisions in this respect. In view of the above explanation, the necessity for the appointment of the Committee suggested by my hon. and learned Friend does not arise.

Is my right hon. Friend aware, whether he calls it confiscation of enemy property or not, that there are sums of money in this country which are being prevented from being paid over to the owners, even though the owners are reduced to a position of impecuniosity? Surely there is some remedy that the Government ought to apply?

I think the hon. Gentleman will find the reply to his supplementary question in the reply to the earlier question, of which I am sending him a copy.

Are not the principal sufferers from these Regulations English-born women who have married foreigners?

Cologne (Evacuation)

asked the Secretary of State for Foreign Affairs whether, upon the question of French security, any assurances which will in any degree affect the freedom of action of His Majesty's Government in regard to the evacuation of Cologne have been given to the French Government?

Questions

British Embassy, Washington

asked the Secretary of State for Foreign Affairs what was the cost in 1924 of moving the British Embassy from Washington to summer quarters; and whether it is proposed to incur similar expenditure in 1925?

The sum of £1,100, at par of exchange, was contributed from public funds towards the cost of moving the British Embassy at Washington to summer quarters in 1924. If public business at His Majesty's Embassy at Washington permit, it is proposed to incur approximately similar expenditure in 1925.

League of Nations

Opium Conference

asked the Secretary of State for Foreign Affairs whether he will shortly make a statement on the recent Opium Conference at Geneva?

I propose to lay a full Report as a Command Paper as soon as possible.

Geneva Protocol

asked the Secretary of State for Foreign Affairs when he will be able to make a statement or circulate a White Paper showing the views of the Government on the Geneva Protocol and the amendments, if any, which they intend to propose?

I regret that I cannot yet say when I shall be in a position to give the information asked for in the question.

asked the Secretary of State for Foreign Affairs whether he proposes to submit amendments to the Protocol at the forthcoming League of Nations Council; and, if so, whether he will indicate to the House the nature of these amendments?

The consideration of the Protocol by His Majesty's Government is not yet concluded, and it is therefore undesirable that I should make any statement upon it at present.

further asked the Prime Minister whether the recent criticism of the Committee of Imperial Defence concerning the protocol has been put into writing; and, if so, whether he will communicate to the House the substance of this criticism?

The matter being still under consideration, His Majesty's Government are not in a position to make a statement.

International Institute

asked the Secretary of State for Foreign Affairs whether there has been any further development with regard to the proposed international institute for the furtherance of intellectual co-operation offered by the French Government under certain conditions to the League of Nations: whether the acceptance of these proposals by the Assembly of the League of Nations is now definite; whether he has any information with regard to the appointment of directors to this proposed international institute; and whether he will consider the desirability of urging that the proposed institute should be located at Geneva?

The Council at its session in December had before it a draft letter from the French Government which it decided to consider as constituting the agreement recommended by the Assembly. Some slight amendments were suggested, and I am not aware whether the letter in its final form has actually been received by the President of the Council nor whether the agreement has formally taken effect. Subject to such an agreement, the acceptance of the French offer by the League of Nations is definite. The Committee of Intellectual Co-operation, with the approval of the Council, have to nominate a committee of directors. I am not aware whether any steps have yet been taken in this direction. The location of the institute in Paris has been decided upon, and the question can hardly be reopened.

Saar Valley Commission

asked the Secretary of State for Foreign Affairs whether instructions will be given to the British representative at the Council of the League of Nations that the Chairman of the Governing Commission of the Saar Valley, who will be appointed at the next meeting of the Council, should be familiar with the German language, which is the language of the inhabitants of the Saar Valley; and whether His Majesty's Government consider themselves free to suggest a change in the nationality of the President?

I can add nothing to the answer given to the hon. Member on 18th February.

Is not the right hon. Gentleman aware that the reputation of the League of Nations for impartiality in the government of the Saar Valley must suffer if there is no change in the nationality of the chairman?

No, Sir. I must not be taken as agreeing with the hon. Gentleman's view.

What instructions does the right hon. Gentleman propose to give our representative in the matter of the election of the chairman?

Questions

S.S. "Edith Cavell."

asked the Secretary of State for Foreign Affairs, seeing that the arrest of and charges against Captain Joys and Mr. Buxton, of the s.s. "Edith Cavell," were under the French decree. of 24th March, 1852, which is a disciplinary decree applicable only to the French mercantile marine, and that therefore the arrest is misconceived, if he will make representations for the immediate release and repatriation of these officers?

Yes, Sir. His Majesty's Ambassador at Paris has already made urgent representations to the French Government for the immediate abandonment of proceedings against the two officers and for permission for them to leave St. Laurent.

Does the answer "Yes, Sir" mean that the hon. Gentleman agrees that the decree under which proceedings were taken has no reference whatever to anybody but French officers and members of the French Mercantile Marine?

No, Sir; I am not competent to give an opinion upon that point. What I wish to tell my hon. Friend is that every action possible is being taken to help these two officers.

New Hebrides

asked the Secretary of State for Foreign Affairs whether he will institute any negotiations in order to meet the criticisms of Australia and New Zealand with reference to the state of affairs in the New Hebrides?

The matter is under consideration; and I can say no more than that at present.

Sudan (Condominium Agreement)

asked the Secretary of State for Foreign Affairs whether the Condominium Agreement of 1899 is still effectively in force or, if not, under what instrument the Government of the Sudan is being carried on?

The answer to the first part of the question is in the affirmative; the second part does not therefore arise.

Is the right hon. Gentleman prepared to lay a Paper or make a statement showing to what extent the Condominium Agreement has been modified

The hon. and gallant Member's question was whether the agreement was still effectively in force. I replied that it was.

Inasmuch as the right hon. Gentleman told me a few days ago that it had been modified owing to certain circumstances, will he state specifically what modifications have taken place?

My recollection is that I did not say the agreement had been modified. If I did, I expressed myself badly under cross-examination. What I think I said was that our action had been altered, in consequence of the events which had taken place.

Portugal (Tariff)

asked the Secretary of State for Foreign Affairs if he has any information indicating the intention of the Portuguese Government to increase their customs tariff at an early date?

I have been asked to reply. The; Portuguese Government have recently increased the duty on woollen goods and tea, but I am not aware whether they intend to introduce further increases of duty in the near future. Any information on the subject which may reach us from our representatives in Portugal will be duly announced in the Board of Trade Journal.

Do the Government take any steps, when foreign countries propose increased tariffs, to induce those countries not to put on increases which are prejudicial to British trade?

Yes, Sir. Our representatives on the spot do all they can to further the interests of British trade.

United States Consul-General, London (Income Tax)

asked the Secretary of State for Foreign Affairs whether he is aware that the American Consul-General in London is purporting to act as intermediary between the collector of United States Income Tax and British subjects domiciled in Great Britain and addressing communications to them in that capacity; whether this is in accordance with the duties of consular officers and within the usage of international comity in foreign countries, as generally understood; and whether the British Consul-General in New York renders similar services to the British Government in the case of American subjects domiciled in the United States liable, or suspected of being liable, for British Income Tax?

I have no official information about the action of the Consul-General. So far as I am aware His Majesty's Consul-General at New York does not make communications of the kind suggested to United States citizens.

Royal Navy

Malta Dockyard

asked the First Lord of the Admiralty whether the proportion of men on the fixed establishment at the Malta dockyard is approximately the same as in other royal dockyards overseas; and, if not, whether steps will gradually be taken to equalise the proportion?

There is no designed scale of establishment for local workmen either at Malta or any other dockyard abroad. Establishment has been allowed in special cases, and the number of such cases at Malta is not on a lower scale than at other dockyards abroad.

Marsa Sirrocco Bay (Breakwater)

asked the First Lord of the Admiralty whether the approximate cost of a breakwater at Marsa Sirrocco Bay can be estimated by the civil engineering staff at Malta, to facilitate the discussion on the urgency of that work when the Naval Estimates come before the House; and how often in the last two years His Majesty's ships in that harbour have been in serious danger?

The civil engineering staff at Malta is fully occupied on urgent current work, and I am, therefore, unwilling to divert them from their normal duties in order to investigate a proposal for a work which my hon. Friend has already been informed is not considered necessary. There is no record at the Admiralty of any of His Majesty's ships having been in serious danger in the harbour during the last two years.

Seamen's Leave (Travelling Expenses)

asked the First Lord of the Admiralty whether he is aware that seamen of the Royal Navy who have to travel home long distances for their holidays sometimes are put to heavy expense; that cases occur where men are out of pocket as much as two to four pounds; and whether he could arrange for special consideration to be paid to cases where the return fare amounts to more than one pound?

As already indicated in my reply of the 19th February to the hon. Member for Devonport (Major Hore-Belisha), all men of the Royal Navy participate in a concession granted by the railway companies whereby cheap return tickets are issued for journeys on leave. I realise that men who have to travel long distances to their homes on leave may still be put to substantial expense, but I regret that it is not possible to make a contribution from public funds in any such cases.

His Majesty's Ships "Nelson" and "Rodney."

asked the First Lord of the Admiralty the dates on which the "Nelson" and "Rodney" were laid down and when it is anticipated they will be launched and commissioned?

These ships were laid down in December, 1922. It is anticipated they will be launched in the autumn of this year, and completed in the latter half of next year.

Air Service (Officers Qualified)

asked the First Lord of the Admiralty how many naval officers were qualified for service with the Royal Naval Air Service on the outbreak of War in 1914; and how many are qualified for Air service at present?

As the reply is somewhat long and contains a number of figures, I will, with my hon. and gallant Friend's permission, circulate it in the OFFICIAL REPORT.

I think I had better not discuss that. If the hon. and gallant Member will read my answer, I shall be glad to reply to any further questions he may wish to put to me.

The reply is as follows :

The number of officers qualified for service with the Royal Naval Air Service on the outbreak of War in 1914 was 83, of which 62 were naval officers on the active list and the remainder R.N.R. and direct entry officers.

At the present date the position is as follows:

Pilots—

Officers who have undergone the six months' course at No. 1 Flying School and are now undergoing further training at coastal stations

49

Undergoing course at No. 1 Flying School

30

Already qualified

5

Total

84

Observers—

Qualified officers

36

Under training

10

Total

46

Battle of Jutland (Harper Report)

asked the First Lord of the Admiralty whether he will now authorise the publication of the Harper Report on the battle of Jutland?

American Fleet (Visit to Australia)

asked the First Lord of the Admiralty whether any special warships will be at Australian ports to welcome the American Pacific Fleet on the occasion of its visit to Australia next July?

It is not anticipated that any of His Majesty's ships other than those of the Royal Australian Navy will be in Australian ports on the occasion of this visit.

Coastal Motor-Boat Service

asked the First Lord of the Admiralty whether he is aware of the hardships endured by those serving in the coastal motor-boat service and whether he will cause inquiries to be made regarding the special risks incurred by those so serving with a view to making some special payment to them?

Submarine: Service

asked the First Lord of the Admiralty whether he is aware of the dissatisfaction occasioned in the submarine service arising from the issue of Admiralty Fleet Order 3,095/24; whether this Order was issued because the voluntary system of manning submarines had broken down; and whether any complaints have been received from officers and/or ratings in this service as to the conditions under which they serve, and also as to the new method of making up the complements with volunteers and pressed men?

The answer to the first and last parts of the question is in the negative. As regards the second part, until comparatively recently, the proportion of the total personnel required for submarines was so small that there were always sufficient volunteers. Now that the proportion of submarines to the Navy as a whole has increased, drafting to submarines will be carried out on similar lines to that for all other ships, although volunteers will still be taken first.

36.

asked the Parliamentary Secretary to the Admiralty whether, in view of the fact that the submarine branch of His Majesty's Navy was a volunteer service from the date of its inception, he will review the terms of A.F.O. 3095/1924, observing that service in submarines was made compulsory only for ratings entering His Majesty's Navy after August, 1920?

I would refer my hon. and gallant Friend to my reply to Question No. 34. All ranks and ratings have always been liable for service in submarines, and I know of no authority for the statement in the last part of the question.

Then can the terms of service be varied by mere A.F.O., and does it not require an Order in Council?

They are not varied by A.F.O. They have always been liable to submarine service.

Is it not a fact that, up to this moment, all the men who have served in submarines have been volunteers?

They were asked to volunteer, and up till a short time ago there was a sufficient number who did, but they have always been liable to service in submarines.

Centralised Storekeeping

asked the Parliamentary Secretary to the Admiralty why, in view of the institution of the central store system in His Majesty's Navy, a retired lieutenant for store duties is borne on the establishment of the naval ordnance inspection depot at Woolwich; whether, in the interests of economy, he will consider transferring the responsibility for these stores to the Naval Ordnance Store Department, as is the case in service afloat; if the pay of the retired officer chosen to fill the post is £576 per annum, or if lodging allowance is paid in addition, and to what amount; and if this Royal Naval officer's emoluments are in addition to or include his retired pay?

I will, with my hon. and gallant Friend's permission, circulate the reply in the OFFICIAL REPORT.

This is a further question from last week, to which the same reply was made. Are we, to go on till the end of the Session without my getting an answer? I will try again next week, and I hope the hop. Gentleman will be able to give me one then, even if it is long.

The reply to the Question on the Paper ix as follows :

The system of centralised storekeeping which has been instituted in His Majesty's Fleet is not applied to naval ordnance stores either afloat or ashore. Moreover, the inspection branch of the Naval Ordance Department is entirely separate from the Armament Supply Department, which was formerly known as the Ordnance Store Branch. The retired officer referred to is borne for storekeeping and miscellaneous duties entirely within the Naval Ordnance Inspection Branch. The transfer of these duties to the Armament Supply Department would not result in economy and would, moreover, involve a serious departure from the administrative principles upon which the inspection and supply of naval ordnance material are conducted. The Admiralty is, therefore, not prepared to consider the change suggested. The pay of the retired officer referred to is £567 per annum, inclusive. (not £576 as stated in my reply of the 18th February), and no lodging or other allowance is paid in addition thereto. The officer's retired pay is suspended during his tenure of the past.

Shipbuilding Committee

asked the Firs:, Lord of the Admiralty what is the nature of the Committee that is inquiring into the naval shipbuilding position; when it will commence work; and what is the scope of the Inquiry?

I have nothing to add to the reply which I gave to the hon. and gallant Member a week ago.

Dockyard Labour (Rosyth)

asked the First Lord of the Admiralty if any decision has been reached regarding the transfer of any considerable number of men from Rosyth to southern dockyards; and if he can state the reason for their transfer?

It is not in contemplation to transfer any considerable number of men from Rosyth to southern dockyards.

Questions

Australian Cruisers (Construction)

asked the First Lord of the Admiralty whether contracts for the new Australian cruisers have yet been placed; if so, with whom; whether they have been laid down; and when it is anticipated they will be completed?

The arrangements for placing contracts for these cruisers are not being made by the Admiralty, but by the Australian Commonwealth Government. I understand, however, that they have not yet been placed.

Naval Aircraft Carriers

asked the First Lord of the Admiralty how many aircraft carriers are built or building of over 19,000 tons displacement for the United States of America, Japan, and the British Empire?

As the reply contains many figures, I will, with my hon. and gallant Friend's permission, circulate it in the OFFICIAL REPORT.

The reply is as follows :

The following aircraft carriers of over 10,000 tons displacement are built or building for the United States of America, Japan, and the British Empire:

——

Name.

Displacement.

Tons.

U. S. A

Langley

12,700

* SaratogaSaratoga

33,000

* LexingtonLexington

33,000

Total

78,700

Japan

* AkaciAkaci

27,000

* KagaKaga

27,000

Total

54,000

British Empire

Hermes

11,000

Argus

14,500

Furious

19,100

Eagle

22,700

* GloriousGlorious

22,500

* CourageousCourageous

22,500

Total

112,300

* Being reconstructed as Aircraft Carriers.Being reconstructed as Aircraft Carriers.

In addition Japan has an aircraft carrier, the "Hosho," of 9,500 tons. The total tonnage allowed by the Washington Treaty is: Great Britain 135,000, United States of America 135.900, Japan 81,000.

Japanese Navy (October ManœUvres)

asked the First Lord of the Admiralty how many ships of all classes took part in the last October manœuvres of the Japanese Navy?

193 ships were engaged in these manœuvres, made up of 6 battleships. 3 battle cruisers, 37 cruisers and miscellaneous other vessels, 97 destroyers, 35 submarines and 15 auxiliaries.

Warships (Great Britain and Japan)

asked the First Lord of the Admiralty the grand total of warships laid down by the British Empire and Japan respectively since the signing of the Washington Treaty, including, as coming under the designation of war craft, capital ships, air-plane carriers, cruisers, destroyers, and submarines; whether he will give the similar grand totals for ships sanctioned but not yet laid down; and whether he will

——

British Empire.

Japan.

Laid down.

Sanctioned but not yet laid down.

Laid down.

Sanctioned but not yet laid down.

Capital Ships

2

Nil

Nil

Nil

Aircraft Carriers

2†

2 *

Nil

Cruisers

5

10

2

Destroyers

2

20

15

Submarines

1

18

16

* Actually laid down as Capital Ships in 1920, but now being converted to Aircraft Carriers.Actually laid down as Capital Ships in 1920, but now being converted to Aircraft Carriers.

†Actually laid down as Cruisers in 1916, but now being converted to Aircraft Carriers.

Unemployment

Land Drainage

asked the Minister of Labour whether his Department have any projects in view for the utilisation of unemployed labour for the purpose of assisting farmers and landowners in the draining of their land, digging out ditches trimming of hedges, and rebuilding of stone walls rendered necessary by the years of negligence during the War and a succession of wet winters?

As I informed my Noble Friend on Wednesday last, provision is already made for assistance to agricultural committees and other local bodies for schemes of land drainage to give employment to men who would ether-wise be unemployed. Some 500 schemes of this nature have already been approved as part of the winter's programme. I am sending my Noble Friend details of the conditions under which grants can be made by the Ministry of Agriculture.

Is it not the case that there is a great shortage of skilled hedge trimmers in the country at the present moment, and in view of that fact, and also in view of the amount of juvenile unemployment in the country, would it not be possible to get some sort of scheme for training juveniles in hedge trimming?

circulate in the OFFICIAL REPORT the particular figures on which the grand totals are based?

As the reply is in tabular form, I will, with my hon. and gallant Friend's permission, circulate it in the OFFICIAL REPORT.

The reply is as follows :

If the Noble Lord will put that question down, or will confer with me, I will give him an answer.

Will the right hon. Gentleman consider the advisability of giving grants to the Highlands for the cutting of the bracken, which is destroying so much of the Highlands?

Wishaw

asked the Minister of Labour whether he is aware that unemployment has been exceptionally prevalent for some years in the town of Wishaw, and that there were on the books of the Employment Exchange for that district on the 9th instant no fewer than 2,066, of whom 190, or thereby, will be deprived of further unemployment benefit under a, circular issued by the Ministry of Labour, which came into operation on the 19th instant, and affects many cases of longstanding unemployment, those mainly where less than eight contributions have been paid since the 3rd July, 1922, or less than 30 at any time and whether, in view of the widespread hardship thus entailed, he will reconsider the putting into operation or the continuance of the said circular?

The total number of names on the live registers of the Wishaw Exchange was 2,066, as stated by the hon. Member. The figure of 191, however, given by him was not the figure of those who will "be deprived of further unemployment benefit under" the recent circular I issued, but only of those referred to the Claims and Record Office of the Ministry to ascertain the contribution position of the claimants. Of 175 cases which have so far been returned, only 16 were found not to satisfy the conditions for receiving benefit, and of this latter number, it is not at present certain that some may not be entitled to claim further consideration by the committee on the ground that they are disabled ex-service men.

Benefit (Refusal.)

asked the Minister of Labour the number of persons over 60 and under 70 years of age who have been refused unemployment benefit on the ground that they are unemployable?

Does the right hon. Gentleman realise the fact that this benefit, when withheld, is practically putting these people between 60 and 70 years of age into the position of paupers, and will he reconsider the whole question?

I am perfectly willing to consider the whole question, in so far as it is proved that the benefit is being withheld. I have had many questions on the subject, and the whole question can be raised in the Debate which. I understand, is to take place on Thursday week.

asked the Minister of Labour the number of cases that have been refused benefits at the Springburn Employment Exchange since 1st December, 1924, to date?

The number of applications for extended benefit which were refused at the Springburn Employment Exchange during the period 9th December, 1924, to 9th February, 1925, was 607 out of 3,952 cases referred to the committee during the period.

May I ask whether any further consideration is going to be given by the rota committees, under the right hon. Gentleman's instructions, to these 600 cases?

asked the Minister of Labour whether, in view of the large number of men who are being deprived of any further benefit on the ground that the local employment committee consider they have failed to prove that in normal times insurable employment suitable to their capacities would be available, and in view of the hardship thereby caused to the men and the additional burden thereby thrown on the local funds, he will withdraw the Regulation or modify its effect?

The condition for the receipt of extended benefit to which the hon. Member refers, is a statutory provision, contained in Section 1 (3) of the Unemployment Insurance (No. 2) Act, of August last, and I have no power to withdraw this condition or to modify its effect.

Will the right hon. Gentleman consider the possibility of modifying it by legislation?

asked the Minister of Labour the number of unemployed refused benefit at the Middlesbrough Employment Exchange since 1st January as not genuinely seeking work; and whether he will consider providing some definition of what constitutes genuinely seeking work, in order to guide local rota committees in the making of decisions on a uniform basis?

During the four weeks ended 9th February the number of persons refused benefit by the Middlesbrough local employment committee on the ground that they were not making every reasonable effort to obtain suitable employment or not willing to accept suitable employment was 134. The local employment committees are in possession of memoranda for their guidance in the interpretation of the statutory conditions governing extended benefit.

Does not the right hon. Gentleman think that the regula- tions are so vague as to lead to no uniformity, and does ha not think that the only reasonable standard for refusing benefit is the offer of a job that has actually been refused?

The answer to the second part of that question is, No. You have to judge every case, so far as possible, on its merits, and it is quite clear that in some cases it may be perfectly reasonable to come to the conclusion that a man is not willing to accept suitable employment, even though at that moment there may not be a vacancy to offer. The local committees have, as I say, to take every case really on its merits.

Is it not a fact that the Employment Exchanges were set up to avoid people having to walk about looking for work, and if a, man is on the register and signs regularly, why should it be regarded that he is not genuinely seeking work when he is carrying out the procedure that the State tells him to do?

asked the Minister of Labour how many boards of guardians have sent protests against the Ministry of Labours regulation whereby unemployed insured men are deprived of any further benefit on the ground that they have failed to prove that in normal times insurable employment suited to their capacities would be likely to be available for them; whether he is aware that such a decision is inflicting hardship upon men who, although 65 years of age and over, might have a fair chance of securing employment in normal times; and that the continuance of the regulation has the effect of transferring the support of these men from the unemployment insurance fund to the local rates?

I have received between 60 and 70 protests from boards of guardians with regard to this requirement. The requirement has existed for some years and was made statutory by the Act of last August. It cannot therefore be altered without legislation. I feel bound to add that it would in my opinion be a grave departure from the principle of an insurance scheme to pay extended benefit where this requirement is not satisfied.

Is the Minister of Labour aware that over 500 men have had their unemployment benefit stopped at Blaina because they cannot find employment, and that there are 100,000 men out of employment in the mining industry? Does he propose to modify the Order that he has issued?

The implication of what my right hon. Friend has said—if I have taken him aright—is, shortly, that there are 100,000 men in the mining industry whose unemployment benefit may be stopped—[HON. MEMBERS: "No. no!"] Figures are rather difficult to enter upon in supplementary questions and answers, so, perhaps, the hon. Member will put this particular question down.

Girls Under 18

asked the Minister of Labour how many of the 30,000 girls under 18 years of age recorded as unemployed are in receipt of unemployment benefit; and whether, having regard to the great demand still existing for young women in occupations appropriate to their sex, he will consider the desirability of excluding from the unemployment insurance scheme all women under 30 years of age?

At 9th February the number of girls under 18 years of age on the registers of Employment Exchanges and local education bureaux in Great Britain was 34,480, of whom those having current claims to benefit numbered 11,565, or about 3 per cent. of the number of girls under 18 insured and paying contributions when employed. Those claiming benefit are required to show us, among other things, that they are unable to obtain suitable employment, and I do not think the figures I have quoted point to the desirability of excluding girls, or women under 30, from the liability to pay contributions during insurable employment.

Residence Outside Great Britain

asked the Minister of Labour if there are any recipients of unemployment relief now living in Ostend or other parts of Belgium and drawing their relief weekly from the British Consulate in Ostend; and, if so, what are the numbers?

Persons resident outside the United Kingdom are disqualified for receiving unemployment benefit by Section 8 (3) of the Unemployment Insurance Act, 1920. There are, consequently, no recipients of unemployment benefit in Ostend or other parts of Belgium.

May I take it the information to this effect which has been spread about is absolute fabrication?

I cannot say as to the fabricated character of it, but I believe it is entirely incorrect.

Aberdeen Unemployment Committee

asked the Minister of Labour if he is aware that the representatives of the workpeople on the Aberdeen Unemployment Committee have resigned as a protest against the action of the divisional officer at Edinburgh in overturning decisions which they have made; and what steps he is prepared to take to have a full inquiry into this matter and secure the co-operation of the working-class representatives?

I am awaiting a full report, and w ill go very carefully into the circumstances as soon as I have received it.

Is the right hon. Gentleman aware that not only are the Aberdeen Exchange workmen's representatives dissatisfied, but Members of Parliament are dissatisfied with the autocratic action taken up by this official?

If Members of Parliament are dissatisfied, they will have the opportunity of explaining it on Thursday week. As regards Aberdeen, I am not aware there was any autocratic action taken by any officials I know of, but I forbear to make any detailed statement about the matter until I have really gone into the facts.

Out-Of-Work Benefit (Trade Unions)

asked the Minister of Labour the total amount paid by trade unions in out-of-work benefit since the year 1913?

Information is not available for all trade unions, but as regards unions, in Great Britain, registered under the Trade Union Acts, comprising over four-fifths of the aggregate membership of all unions, statistics showing the income, and the expenditure on various forms of benefit, including unemployment, travelling, and emigration benefit, are published in a statistical summary compiled by the Chief Registrar of Friendly Societies, copy of which I am sending to the hon. Member.

Poor Law Maintenance

asked the Minister of Labour whether he is prepared to consider the introduction of legislation to make unemployment benefit payable to the guardians in respect of a wife or children of an unemployed man when such wife or children are maintained in a Poor Law institution?

I shall be prepared to consider this suggestion, if and when further legislation is introduced, but at present I am not at all satisfied that this is a charge which should be placed on the Unemployment Fund.

West Ham (Relief)

asked the Minister of Labour whether he has specially considered the question of unemployment in the West Ham area; whether he is aware that a large proportion of the unemployment there is due to scarcity of work in the docks; and, as any increase of work is dependent upon an increase either of exports or imports, if he will consider special schemes of relief for this area until such time as our international trade shows more signs of revival?

I am aware of the extent of unemployment in the West Ham area. If the local authority will put forward applications for grants towards the cost of schemes of public utility to be undertaken for the relief of unemployment there, the Departments concerned will give them every consideration.

Local Authorities (Assistance)

asked the Minister of Health whether, in those cases where unemployment has been abnormally large during the past three or four years and is now increasing, he is prepared to recommend the Government to offer these districts some further assistance?

My right hon. Friend has given further consideration to this question, but he does not think that he can add anything to the answer which he gave on the 12th February in reply to a similar question by the hon. Member for Lincoln (Mr. Taylor).

Might I ask the Parliamentary Secretary whether the Minister has taken into account, the new factor which has arisen? The modification of the Regulation as to the payment of unemployment benefit has hit certain towns very badly by transferring large sums of money from the unemployment benefit fund to the rates. In view of that new factor will the right hon. Gentleman reconsider the question?

My right hon. Friend knows that, and also, as he pointed out last week, that in addition to the special grant for unemployment relief works, the rates have been materially relieved by the passing of the Unemployment Insurance Act of last year.

East London

asked the Minister of Labour the number of persons on the register as unemployed in West Ham, Stratford, and Canning Town Exchanges separately; how many of these are men, women, and young persons, respectively; and how many persons are registered as working short time in the areas mentioned?

The Employment Exchanges at Stratford and Canning Town cover the whole of West Ham. The number of persons recorded on the registers of the Employment Exchange at Stratford at 16th February, 1925, was 7,424, of whom, 5,419 were men, 1,481 women, and 524 juveniles. At Canning Town the number was 12,789, of whom, 10,510 were men, 1,180 women and 1,099 juveniles. Separate figures for persons working short time are not available.

Rota Committees

asked the Minister of Labour whether he is aware that the rota committees connected with local Employment Exchanges, and to whom applicants for extended benefit under the Unemployment Insurance Acts must appeal, in many cases comprise only one person; and whether, as this practice is contrary to the generally accepted meaning of the term committee, namely a body of not less than three persons, he will cause inquiry to be made into the matter in order that such one-person committees be brought to an end?

As I stated in my reply to the hon. Member for Govan on 11th February, the rules for the composition of rota committees provide that the persons shall form a quorum, but that, if two persons are unable to be present at the hearing of a case, the case should not be postponed but should be dealt with by the remaining member, and his recommendation should. be submitted for confirmation to a fully-constituted sub-committee. I do not think that it would be in the interests of applicants themselves to forbid the hearing of applications if only one member of the committee attends, but the practice is confined within the narrowest possible limits.

Is the right hon. Gentleman aware that there are trade union members, social workers, willing to serve upon these committees, and give their time voluntarily if he issues instructions to his Department to send round invitations?

The committees are already composed of representatives of workers, of employers, and also those who have other interests. Invitations are given to those already. If it is found that persons cannot under present circumstances be obtained to attend so as to have a proper attendance at the rota committee, I will always consider the possibility of issuing further invitations to increase it, if need be.

Questions

Labour Statistics (Wage Index Numbers)

asked the Minister of Labour whether, in continuation of the table which appeared in the last number of the Abstract of Labour Statistics issued in 1915, be can now state the wage index numbers for the principal groups of trades at the end of 1924?

Owing to the wide diversity of the changes in wage rates in different industries since 1914, wages index numbers prepared on the same basis as that adopted for the table published in the 17th Abstract of Labour Statistics would be subject to so many qualifications as to be of little value, if not actually misleading. Particulars as to the comparative levels of rates of wages at August, 1914, and the end of December, 1924, however, together with certain index numbers are published in the current issue of the "Ministry of Labour Gazette," a copy of which I am sending to my hon. Friend.

Money-Lenders

asked the Prime Minister if the Government has considered the introduction of legislation dealing with the activities of professional money-lenders?

I have been asked to reply to this question. This matter is receiving consideration.

May I ask whether the same legislation which prevents the sending through the post of immoral literature could not be applied to these money-lenders' circulars?

The Board of Trade is also interested in this matter, and we are in consultation with them at this moment on the subject.

Can the hon. Gentleman say when any decision is likely to be arrived at?

Will it not he possible to make it compulsory for money-lenders to mark the envelopes containing their circulars?

Manual Workers' Wages

asked the Minister of Labour whether he is prepared to arrange for an inquiry into the earnings of manual workers on lines similar to the inquiry carried out in 1906?

The Ministry of Labour is about to undertake an inquiry into the earnings and hours of labour of manual workers in manufacturing industries in 1924. The information asked for will be considerably less detailed than that obtained in 1906, but arrangements are in contemplation for amplifying it at a later date by means of inquiries into particular industries taken separately. The issue of the, schedules for the present inquiry will begin next month. The return of these schedules by employers is, of course, voluntary, not compulsory, but in view of the importance of having accurate information on this subject, I hope employers will co-operate by supplying the details, which will be kept strictly confidential as regards any individual firm or establishment, and only used for compiling general statements.

Will the earnings of domestic servants and clerks be included in the inquiry?

I think I must ask for notice of a detailed question like that.

Are the headings under which the information is supplied to be sent out by the Ministry, or left to be put by the employers themselves?

I will make inquiries, and tell the hon. Gentleman. Speaking from memory, they are to be sent out by the Ministry.

Industrial Disputes

asked the Minister of Labour the aggregate number of persons involved in industrial disputes during the last 10 years; the estimated number of separate individuals so involved; and, so far as it can be estimated, the number of separate individual wage- earners who have never partaken in an industrial dispute during the last 10 years?

Statistics showing the numbers of workpeople involved in industrial disputes in each of the years 1910–1924 were published in an article in the "Ministry of Labour Gazette" for January last, a copy of which I am sending to my hon. Friend. Figures do not exist showing the numbers of separate individuals who have, or have not, been involved in such disputes.

Workers' Holidays

asked the Minister of Labour the number of persons in the State and municipal services, respectively, in Great Britain who enjoy not less than one week's holiday each year with full pay; and the number of persons enjoying the same privilege in the service of private firms?

As the reply is necessarily somewhat long, I will, with the hon. Member's permission, circulate it in the OFFICIAL REPORT.

Following is the reply :

Exact figures are not available, but it is estimated that among the emplpoyés of Government Departments, about 270,000 of the clerical and manipulative classes. and rather more than 30,000 workpeople in industrial establishments, are granted annual holidays, with full pay, of not less than one week (apart from public holidays). Among the emplpoyés of local authorities, and among private firms, the numbers of manual workers covered by collective agreements known to the Ministry of Labour to have been arrived at by organisations representing employers and workpeople, providing for at least one week's holiday annually with full pay, are estimated at about 150,000 and nearly 1½ millions, respectively. In addition, a large proportion of the clerical and salaried emplpoyés of local authorities and of commercial and industrial firms are granted annual holidays with pay, but no statistics are available which would enable a satisfactory estimate to be made of the total numbers of such emplpoyés.

Insurance Records (Information)

asked the Minister of Health whether his Department is prepared to supply from its insurance records information concerning an insured person in cases where such information is necessary for the enforcement of an Order of the Court that the insured person shall contribute to the support of his wife whom he has deserted and whether, assuming that a wife is morally, if not legally, entitled to all information available which may lead to the recovery of her husband, and that the husband has defied the Court and left his wife unprovided for, he will authorise his Department in this case to disclose to the wife or to the Court any information in its possession concerning the husband?

The rule that information relating to insured persons which comes into the possession of approved societies in the course of their administration of a State scheme of compulsory insurance should not generally be used otherwise than for the purposes of such administration, except with the consent of the insured persons themselves, has been consistently followed by every Government since 1912, and my right hon. Friend is net prepared to depart from it, unless for grave reason.

Safeguarding of Industries

asked the President of the Board of Trade if he will facilitate future Debate on proposed duties under the Safeguarding of Industries Act by causing a Return to be prepared showing, as regards articles now subject to duty, the proportion of the duty assignable to the imported raw material in a manufactured article and the proportion of the duty on the same article assignable to the important labour constituent thereof; and whether a Return can be prepared on the same lines as regards the principal manufactured imports not subject to duty?

I regret that the information necessary for the preparation of the Returns for which my hon. Friend asks is not available,

May I ask the hon. Gentleman whether he is aware that the key to the unemployment question is to be found by rending the veil that covers sweated labour by importing it under the guise of legitimate Free Trade?

Glasgow Corporation (Housing)

asked the Minister of Health whether his attention has been called to the action of the Housing Committee of the Corporation of Glasgow in laying down, at the instance of the building operatives, that the building trade rate of wages and conditions must be enforced in the erection of the proposed standardised steel houses by Lord Weir's firm; whether he is aware that, in these circumstances, Lord Weir has informed the Corporation of Glasgow that he cannot proceed with the proposed contract for the erection of houses for Glasgow workers to meet the existing serious shortage; and what action is being taken by the Ministry to secure the success of their scheme for accelerating the provision of houses for the working classes?

My right hon. Friend is aware of the facts to which my hon. Friend refers. The matter is engaging the attention of the Government, but my right hon. Friend is not in a position to make a statement at the present time.

Will my hon. Friend represent to the Minister the great urgency of dealing with this matter promptly in view of the indignation in the country at the holding-up—[ Interruption ]—of urgently needed houses?

Are the building trade rates referred to the rates for skilled or for unskilled labour in the building industry?

I cannot enter into discussion of this matter now. The whole subject is receiving the careful consideration of my right hon. Friend.

When the statement referred to is made, will it be made in a form to permit of discussion in the House

I must ask the right hon. Gentleman to address that question to the Leader of the House.

Will Ministers consider the desirability of postponing the attack on the industry and the rights of the workers until they have completed their political attack?

Is the hon. Gentleman aware that the legal advice given to the Glasgow Corporation by eminent solicitors and lawyers in Scotland is that it is illegal under the bye-laws and standing orders of the Corporation to grant a contract to Lord Weir under the wage conditions he is offering [HON. MEMBERS: "Answer!"]

Is it not a fact that many people in Glasgow are in possession of houses, and are refusing to pay the rent, and therefore——

On a point of Order. The hon. Member opposite has stated that Glasgow people are not paying rents. I want to put this point. In view of the fact that a Commission has been appointed by the Secretary for Scotland to inquire into the facts of the rent situation of Scotland, that that Committee has not reported yet, and has only heard evidence, is it not grossly unfair for a Member of this House to make remarks of that kind?

I was just about to rule the question out of order as being irrelevant, and introducing a point which has nothing to do with the question which has been answered.

Mr. Speaker—[HON. MEMBERS: "Order!"] Is the hon. Gentleman aware that the question asked casts serious reflections, and prejudices the case that is now before the Commission: further, that it also casts a serious reflection on certain members of this House who are ratepayers and holders of houses in Glasgow?

The hon. Gentleman is taking too large a view of a half-put question, that I, myself, was rising to stop at the time he intervened.

Illegal Trawling (Scotland)

asked the Secretary for Scotland whether, in view of the prevalence of trawling within prohibited waters in the vicinity of Mull, Jura, Colonsay, Tiree, and Coll, and the failure of the present means of prevention and penalties, he will cause legislation to be enacted increasing the means of prevention and adding to the penalties by way of detention in custody or confiscation of poaching trawlers?

No complaints of illegal trawling in the waters referred to by my hon. and learned Friend have been received by the Fishery Board for Scotland for some considerable time. Following on the report of the Trawling (Scotland) Committee the Board's patrol fleet was strengthened, and, pending further experience, it is not proposed to make more additions to the fleet. The recommendations of the Committee as regards penalties are receiving consideration.

Will the right hon. Gentleman accept from me some complaints that have been sent in to me about poaching, and will he also remember that when poaching does take place it takes place at the instigation of the owners of the trawlers, and that the only way of getting at them is to confiscate or lay up the boat—that then you get at the owner as well as the actual wrong-doer? Will the right hon. Gentleman take as an example the way Iceland treats those who poach in forbidden waters?

Is the Minister aware that the President of the Board of Trade has power under the existing law to cancel or suspend the certificate of any master convicted of this offence, and will he confer with him to see whether something cannot be done to put an end to what is nothing more or less than common theft?

I have already said with regard to penalties that that matter is receiving my careful consideration at the present time. In reply to the hon. and learned Gentleman, if he has any representations to make to me I shall be glad to receive them.

Will not the Minister agree to confer with the President of the Board of Trade, who will, I am sure, give assistance in this matter, and see whether that Minister will not put into operation the power he has now of cancelling the certificate of any master convicted of this offence? Why will not the right hon. Gentleman do it?

Will the right hon. Gentleman consider whether, without adding permanently to the patrol fleet of the Fishery Board, he could borrow a certain number of boats from the Navy for a special period of vigilance?

House of Commons (Pictures)

asked the Under-Secretary of State for the Home Department, as representing the First Commissioner of Works, whether his attention has been called to the existence, in the storerooms or vaults of the National Gallery and other public collections of considerable numbers of pictures which are never placed on exhibition, but which, nevertheless, possess considerable decorative effect; and whether he would consider the possibility of placing a selection of them upon the walls of the committee rooms of this House?

Most of the pictures not hung in the National Gallery and other galleries are sent from time to time on exhibition to provincial galleries, and would not be available for decorating Committee rooms in the House. I understand there may be available, with consent of the trustees, some large pictures at the Tate Gallery. I understand that the First Commissioner of Works will have further inquiries made with a view to seeing whether the suggestion of the hon. Member can be adopted.

Is the right hon. Gentleman aware that there is a good precedent for lending in the fact that there are some very large and important pictures in the Great Room of the Board of Works, and if the Great Room of the Board of Works can be so adorned, why should not the Committee rooms of this House?

It is a question of the number of pictures available. It is not desirable to take them away from the enjoyment of the larger public.

Will severe discrimination be exercised in the selection of some of those pictures, particularly those in the Tate Gallery, and might the advice of the Commission of Fine Arts be invoked first?

Is it not a fact that large numbers of Turner's paintings, which would have been appreciated elsewhere, were for nearly half a century hidden in the vaults of the National Gallery?

I suggest that hon. Members interested should get into communication with the Director of the Tate Gallery who, I understand, will be glad to show them pictures which might be available.

Was not a very decorative picture offered to us by a Member of this House and refused?

Burton Court Huts

asked the Under-Secretary of State for the Home Department, as representing the First Commissioner of Works, if he will state when the huts on Burton Court, in front of Chelsea Hospital, are to be removed so that the troops in London may resume the use of their recreation ground?

Shaftesbury Memorial Fountain

asked the Under-Secretary of State for the Home Department, as representing the First Commissioner of Works, whether his Department has been in communication with the London County Council with regard to the re-erection in Hyde Park of the Shaftesbury Memorial fountain, recently removed from Piccadilly Circus, or on any other site over which the Department has control; and, if so, whether he can in, form the House as to whether any definite site has been determined upon?

The answer to the first part of the question is in the negative. I understand that the statue of Eros has been removed by the London County Council to the County Hall, and that the Underground Railway Company are making arrangements for storing the remainder of the fountain.

Army, Navy and Air Force Expenditure

asked the Chancellor of the Exchequer the gross expenditure on the Army, the Navy, and the /fir Force, respectively, for each of the last five years?

With the hon. and gallant Member's permission, I will circulate these figures in the OFFICIAL REPORT.

Following are the figures:

Navy.

Army.

Air Force.

£

£

£

1920–21

112,793,809

210,258,444

23,949,370

1921–22

87,005,692

125,188,998

16,394,681

1922–23

65,403,954

66,001,075

14,585,271

1923–24

59,201,586

55,532,359

16,635,706

1924–25 (estimated).

59,693,251

54,480,000

19,392,000

Income Tax Payments

asked the Chancellor of the Exchequer whether he will consider the necessity for legislation putting the payment of Income Tax in England on the same system of direct prompt settlement as in Scotland, instead of being collected through small tradesmen over a period of several months?

The provisions of the law under which Income Tax becomes due and payable are the same in England as in Scotland. There are certain differences in the machinery of collection, but I cannot accept what appears to be the hon. Member's suggestion, that this results in any discrimination against Scottish taxpayers. If there is any such difference as alleged in the matter of promptitude, it would appear to be due to the Scottish taxpayer setting a laudable example to the English in his readiness to part with his money.

Seeing that the Scottish people do set a good example, I want to ask the hon. Gentleman if he will see that the same system is adopted here to produce the requisite sums of money for the Exchequer, which should substantially improve the situation in comparison with what it is now?

Ceylon (Police Department)

asked the Secretary of State for the Colonies whether he can state the reason for the increase in the expenditure on the Police Department of Ceylon from Rs.19 lakhs in 1921–22 to Rs.30 lakhs in 1923–24?

The Vote for the Police Department amounted to Rs.2,156,000 in the year 1921–2, and to Rs.3,042,000 in 1923–4. The increase is, in the main, due to the revision of salaries, applicable to all officers of the Ceylon Service, resulting from the Report of the Salaries Commission of 1921. In addition, there have been some small increases of establishment, due to the opening of stations in districts not previously policed.

Irish Free State (Compensation Claims)

asked the Secretary of State for the Colonies whether it has been brought to his notice that many Irishmen whose houses and possessions were destroyed by supporters of the Irish Free State have been partly compensated in long term bonds issued by the Government of the Irish Free State, which bonds are only convertible into cash at a serious loss from their face value; and whether, in view of the hard ships and suffering already experienced by these people, and their need for money in many cases, he can see his way to paying these, bonds in approved eases at a reasonable discount?

Before this question is answered, Mr. Speaker, I want to raise with you the wording of this question where it says that "possessions were destroyed by supporters of the Irish Free State." In view of the fact that this is now a friendly Colony, is this language permissible as a reflection on the Irish Free State?

I do not see anything here that carries a reflection on the Irish Free State. I often have to edit Irish questions, but this seems to me to be particularly good in avoiding it.

I am aware that a proportion of the compensation payable under the Damage to Property (Compensation) Act, 1923, of the Irish Free State is payable in 5 per cent. stock redeemable by annual drawings over a period of 10 years and that this stock at present stands at a discount of approximately 7 per cent. His Majesty's Government cannot undertake to liquidate this stock, whether at a discount or otherwise, but they are considering whether it will be possible in any other way to assist such persons as may be suffering real hardship owing to the necessity for converting this stock into cash.

Ibn Saud

asked the Secretary of State for Foreign Affairs whether it is intended to send an emissary or representative of His Majesty to the court of Ibn Saud; and what foreign Powers are represented at the court of this potentate?

No such proposal as that indicated in the first part of the question is at present under the consideration of His Majesty's Government. I am not aware that any foreign Power is represented at the court of the ruler in question.

Business of the House

Might I ask the Prime Minister what business he proposes to take to-day up to a quarter-past eight?

Owing to the indisposition of the Home Secretary, it is not proposed to ask the House to take the Second Reading of the Guardianship of Infants Bill to-day, should we get so far. In no case do we propose to go beyond Order No. 7.

In view of the fact that the Air Estimates are now divided between two Votes, is it the intention to invite the First Lord of the Admiralty to attend the Air Debate to-morrow, as well as the Secretary of State for Air?

I will look into those Votes between now and then. Of course, if it is desirable that, the First Lord of the Admiralty should be here, he certainly will be here. I cannot say now, but I will look into the matter.

I suppose the right hon. Gentleman means to take the Resolution with regard to the British Empire Exhibition to-day, if we get to it?

Notices of Motion

Foreign Affairs (Parliamentary Control)

I beg to give notice that on this day fortnight I shall call attention to the necessity for Parliamentary control of foreign affairs, and move a Resolution.

India

I beg to give notice that on this day fortnight I shall call attention to the position of affairs in India, and move a Resolution.

Territorial Army

I beg to give notice that on this day fortnight I shall call attention to the Territorial Army, and move a Resolution.

Co-Operative Societies

I beg to give notice that on this day fortnight I shall call attention to the position of co-operative societies in relation to political parties, and move a Resolution.

Nursing Homes (Registration)

I beg to move, versial character, and among its backers are members of all parties in this House. Consequently I have confidence in saying that I believe the provisions of this Measure will not only appeal to the country as a whole, but to all those who sympathise with the great profession in whose interest it has been brought forward. At the present moment the phrase "nursing home" has no meaning whatever. Any person, however unqualified, can call his or her institution, however ill-run or managed, a nursing home, however unskilled or untrained the nurses may be, and however extortionate the charges may be. This involves two abuses. First of all, the prevalence of these bogus institutions drags down the prestige of a great and deserving profession; secondly, the existence of these bogus institutions is a fraud on the public.

The intention is to provide for the registration and inspection of nursing homes, so that no institution can be carried on as a nursing home which is not worthy of the title. The conditions required for registration are of a very moderate character, and the only grounds on which an institution can be refused the title of "nursing home" are grounds which I think will commend themselves to everybody. If this Bill is passed no institution will be entitled to be called a nursing home where it is carried on by unqualified or unsuitable persons, or where the nursing staff or domestic staff is ill-accommodated and the ventilation bad, or the lighting or warming inadequate. The matron or other person having charge of the management must be a State registered nurse, and this provision conies into force after the 1st January, 1930. Nothing in this Bill is intended to preclude anyone having no connection with the nursing profession from being the proprietor, but the matron or person in charge must be a fully qualified person. There are provisions by which a person who is refused registration can appeal to the Minister of Health, and he can appoint a referee to deal with that complaint.

The question of proprietorship is unaffected, and so far as the details are concerned, those promoting this Bill are most anxious to meet everybody who is interested in this question so that it may be definitely regarded as being non- controversial. Although it has been drafted by the College of Nursing, it is not intended to favour any section of nurses, but to help all of them. In asking leave to introduce this Bill I should like to ask the House to give this Measure a helping hand in the more important critical stages between this and its passing into law. I should like to express the hope that the Ministry of Health will do all it can for this Bill in a way we have a right to expect from an enlightened, humane and progressive Government.

Question put, and agreed to.

Bill ordered to be brought in by Mr. Gerald Hurst, Lieut.-Colonel Fremantle, Mrs. Philipson, Lieut.-Commander Astbury, Mr. Penny, Sir Henry Slesser, Sir George Berry, Miss Wilkinson, Captain Bourne, Captain Loder, Major Birchall, and Mr. McIntyre.

Nursing Homes (Registration) Bill,

"to provide for the registration and inspection of Nursing Homes," presented accordingly, and read the First time; to be read a Second time upon Friday, 6th March, and to be printed. [Bill 81.]

Bills Presented

Fire Brigade Pensions Bill,

"to make provision respecting the retirement, pensions, allowances, and gratuities of professional firemen who are members of fire brigades in Great Britain, and their widows, children, and dependants," presented by Lieut.-Colonel VIVIAN HENDERSON; supported by Sir Godfrey Collins, Sir James Remnant, Sir Robert Newman, Lieut.-Colonel Mason, Major Glyn, Mr. Gerald Hurst, Mr. Clarry, and Mr. Couper; to be read a Second time upon Monday, 9th March, and to be printed. [Bill 79.]

Gaming Machines (Scotland) Act (1917) Amendment Bill,

"to amend The Gaming Machines (Scotland) Act, 1917," presented by Sir SAMUEL CHAPMAN; supported by Mr. Kidd, Mr. Mitchell, Captain Wedgwood Benn, Mr. Skelton, Mr. Thomas Kennedy, Mr. Robert MacDonald, Mr. Robertson, and Mr. Ford; to be read a Second time upon Thursday, 5th March, and to be printed. [Bill 80.]

Agricultural Rates (Additional Grant) Continuance Bill

Reported, without Amendment, from Standing Committee A.

Report to lie upon the Table, and to be printed.

Minutes of the Proceedings of the Standing Committee to be printed.

Bill not amended (in the Standing Committee), to be taken into consideration To-morrow.

Standing Committees

Ordered, That all Standing Committees have leave to print and circulate with the Votes the Minutes of their Proceedings and any amended Clauses of Bills committed to them.—[ Mr. Samuel Roberts .]

Selection (Standing Committees)

Standing Committee B

Mr. WILLIAM NICHOLSON reported from the Committee of Selection; That they had discharged the following Member from Standing Committee B: Mr. Beckett; and had appointed in substitution: Mr. William Thorne.

Report to lie upon the Table.

Orders of the Day

Trade Facilities [Money]

Resolution reported,

"That it is expedient to amend the Trade Facilities Acts, 1921 to 1924—

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

After the full Debate that took place yesterday, I do not propose to detain the House except for two or three minutes, to ask one or two questions of the Financial Secretary to the Treasury. I have here the Consolidated Fund White Paper, and I notice that it refers to the loss that has been made under the Trade Facilities Act. I should like Ito read to the House what the Comptroller and Auditor-General states with regard to this loss, and to ask my right hon. Friend one or two questions regarding it. The Comptroller and Auditor-General states that:—

"Included under Other Consolidated Fund Services (Miscellaneous Services) is an amount of £4,399 12s. 7d. paid in respect of a guarantee given by the Treasury in May, 1922" —

and he goes on to say, in regard to this:

"It appears from the papers furnished to me that the early insolvency of the company was due mainly to the purchase of unsatisfactory plant, and, further, that the liability of the Consolidated Fund may have been increased to some extent by the omission of the bank to notify the Treasury or the Trade Facilities Advisory Committee that the first half-yearly instalment of interest was overdue."

I only wish to ask the Financial Secretary what was the security for this loan, how many men did it employ, and, also, were those man unemployed previous to the guarantee? There is one other point that I should like to put to the Financial Secretary with regard to the other White Paper that was issued. It is in reference to the Greek electrical scheme, where the guarantee of the Government has been given to the extent of £2,000,000. I should like to ask my right hon. Friend whether, in the repayment of that amount, the exchange is guaranteed. I shall he very pleased if my right hon. Friend will reply to these questions.

I am sorry that I have not been able to get the information for which the hon. Member asked last night as to the security that was obtained in connection with the loan on which there was the loss to which he referred. As I promised him, I have asked for that information, and I regret that in the short time that has elapsed it has not yet been possible for it to reach me. Of course, it is a very regrettable loss, but I do not think my hon. Friend ought to make too much of a loss of £4,000, on a guarantee given nearly three years ago, out of a total amount of £55,000,000. The other question that my hon. Friend asked was whether there was any guarantee of exchange in connection with the Greek guarantee. I understand that there was not.

May I ask the right hon. Gentleman one question I Can he say if there has been any loss over the whole period in connection with shipbuilding, and, if so, what the amount of that loss was?

May I, then, be permitted to make one or two remarks? Yesterday I listened to the speech of the late Financial Secretary to the Treasury, and he inferred that shipbuilding was not now the business proposition that some Members of the House conceive it to be. The inference rather was that in the case of shipbuilding there was a greater chance of loss than in the case of other industries. I want just to say that, so far as shipbuilding firms are concerned, they have been able to pay their way at least equally with the other industries of the country.

Should I he in order in asking that the Trade Facilities Bill be used to facilitate trade with Russia, in connection with the exportation of coal to that country? I should like to point out, if I am in order, that the mining industry is suffering unparalleled depression——

That is a matter which would come under the Export Credit scheme, and not under the Trade Facilities scheme. therefore, I do not think it comes within this Bill.

Question, "That this House doth agree with the Committee in the said Resolution," put, and agreed to.

Bill ordered to be brought in upon the said Resolution by the Chancellor of the Exchequer and Mr. Guinness.

Trade Facilities Bill,

"to amend the Trade Facilities Acts, 1921 to 1924, by increasing the maximum limit of the loans in respect of which guarantees may be given under those Acts and by extending the period within which such guarantees may be given," presented accordingly, and read the First time: to be read a Second time To-morrow, and to be printed. [Bill 82.]

War Charges (Validity) Bill

Order for Third Reading read.

Motion made, and Question proposed, "That the Bill be now read the Third time."

It so happens that on previous occasions during this Session when this Measure has been before the House I have been unavoidably prevented from being present, and I want to take the opportunity of the Third Reading to add my protest to those which have been made during the discussions on the Second Reading and on the Report stage. We are in the position to-day that we are legalising a number of wrongful acts which, had they been done 100 years ago, would probably have landed the person who did them in durance vile for a considerable time and subjected him to heavy penalties. We have here a number of instances of such acts, though I observe that the question of milk is very discreetly withdrawn from the Bill, because the right hon. and learned Gentleman who is now the Attorney-General moved, when the late Government were piloting this Bill through the House, an Amendment to that effect. The history of this War Charges (Validity) Bill is a very strange story. I do not suppose that in the annals of this House there is to be found a similar case. Here we have four governments, each of them bound by their obligations to the executive to get the executive officers out of a mess, and so, one after the other, they have produced this Bill for the purpose of legalising levies of money made upon His Majesty's subjects without the consent of Parliament. That is a state of things which would have made our ancestors' hair stand up on end. Not only so, but in every one of the cases that have been dealt with the judges have expressed their views in no measured terms. One learned judge, in particular, was extremely candid, saying that, the further we proceed in democratic progress, so the liberty of the subject becomes curtailed. I venture to submit that to the consideration of hon. Members above the Gangway on the other side—that, as progress in democratic principles proceeds, the liberty of the subject is curtailed.

I am not going to answer that interjection, because obviously it is made without due thought, but I venture to submit that this House is in a painful position, and I have not the least doubt that the Attorney-General and the President of the Board of Trade feel their position acutely. Although they may have no sympathy with the persons who have been trying to get back this money, there are circumstances where it is positively unjust to refuse it, and where, but for the Indemnity Act, there would have been a good claim enforceable long ago had it not been for the means to which these public servants resorted to refuse the fiat for proceedings, or other things which prevented the suppliants from being able to exercise their legal right. A very dark chapter might be written with regard to the methods of the Exec hive to try and defeat these claims in order that they might have the protection of a belated Statute. I notice that my hon. Friend the late Parliamentary Secretary to the Board of Trade (Mr. A. V. Alexander) is amused, but I venture to think that is the position which he and his Government and each Government are taking up in turn, and it is one that may he relied upon one day for the great undoing of the people whom we represent in this House.

I do not suppose for a moment that this Bill can be arrested at this stage. There has been no Division upon it this Session. There was last year, and of course there was the successful Division in which my right hon. Friend succeeded in getting the milk excluded. It is true that there was a judgment of the House of Lords, the ultimate Tribunal, declaring these charges illegal. There would have been other judgments both of the Court of Appeal and of the House of Lords declaring these levies illegal if it had not been for the devices resorted to by Departmental officers. I have in mind while I speak the criticisms of Sir Thomas Senator' in the Court of Appeal when it was sought to defeat a claim because the writ had been issued and served upon the Secretary to the Board of Trade. It was pointed out that the Board of Trade consisted of a great number of persons, including the Archbishop of Conterbury, who must personally be served with the writ before it could be effective, and so it was discharged. These are matters to which I refer because they show the temper in which these proceedings have been resisted from time to time by the Government Departments who are primarily concerned with the illegality. As I said a moment ago, I am not arresting this Bill. I can only do as my hon. Friend the Member for York (Sir J. Marriott), a great student of constitutional history, and others have done. I can only point out that this is a moment when this House is recognising a great wrong and is legalising a process which has been condemned for the last 300 years. It is doing it with its eyes open, and I hope sincerely that there will he no other opportunity when this House may have this Bill cited as a precedent for legalising other illegal actions.

Question put, and agreed to.

Bill read the Third Time, and passed.

Borough Councillors (Alteration of Number) Bill

Bill read the Third Time, and passed.

Summary Jurisdiction (Separation and Maintenance) Bill

Order for Second Reading read.

I beg to move, "That the Bill be now read a Second Time."

I am sure that the whole House will regret the reason for the absence of my right hon. Friend the Home Secretary (Sir W. Joynson-Hicks) to-day, and his inability to move the Second Reading of this Bill in which he has taken a very great interest. I believe I am right in saying that this Bill is practically non-controversial. I see my hon. Friend the Member for Exeter (Sir R. Newman) in the House. Hon. Members will remember that last year my hon. Friend brought in a measure practically identical with this Bill and passed it through the House of Commons. The late Government then adopted that Bill, and it went to another place. It passed through the Debates in that other place, and it was just on the point of coming back to this House with one or two very minor Amendments when the Dissolution took place, and the Bill had to be dropped. The next step was that in the King's Speech legislation was promised on this subject, and I should like to congratulate my hon. Friend on the fact that his efforts during two or three years—I think he has introduced three Bills on this subject—are now going to bear fruit. As I have said, this Bill is practically identical with the Bill which was adopted by the late Government, and which passed with the assent of both Houses.

The only addition made to the Bill which was adopted by the late Govern-merit is one which has been inserted at the request of the National Union of Societies for Equal Citizenship. It is a provision that either a married woman or her husband may obtain an order against the other on the ground of persistent cruelty to the children. That is the only addition to the Bill that was adopted by the late Government, and really, so far as the wife is concerned, it is only a little extension of the existing principle, because I understand that the Courts very often hold that a husband's cruelty to the children is tantamount to cruelty to the wife, and that an order can be obtained for that reason. It is one of the grounds for an order at the present time. So far as the husband is concerned, this small addition is a very useful one; and in the interests of the children I think we ought to support it, since I feel that they ought to be protected from cruelty by either party.

I should just like to sketch the provisions of the different Clauses to make them quite plain to some hon. Members who may not have been in the House during the last Parliament. Clause 1 abolishes the requirement that a married woman should have left her husband before she applies for an order on the ground of persistent cruelty or wilful neglect by the husband. It provides—and this is a very important proviso—that the order shall remain suspended so long as the wife remains voluntarily resident with her husband. Taking it as a whole, I think it is a very useful provision. Sometimes the wife is afraid to leave her husband lest she should fail to get an order, because if she leaves her husband and fails to get an order, then her position becomes a good deal worse than if she had never left him. There is another reason. In some cases she has not sufficient means to obtain other accommodation away from home. This same Clause also adds two fresh grounds—I do not mean fresh from the Bill adopted by the late Government, but fresh from the existing law for the obtaining of an order—first that the husband has compelled the wife to submit herself to prostitution, or has been guilty of such conduct as likely to result or has resulted in the wife so committing herself; and, secondly, that the husband has been guilty of persistent cruelty to the children.

Clause 2 alters the existing law under which a husband can have an order discharged on proof that the wife has committed adultery subsequent to the making of the order. It provides that if the husband has conduced to the wife's adultery by failing to support her properly in accordance with the order, the Court may refuse to discharge the order. There is another provision in this Clause, which I think is a very useful one, and which affects very much the interests of the children. The Court, on discharging an order for the wife's maintenance on the ground of the wife's adultery, may also make a fresh order allowing the wife to retain the custody of the children of the marriage and providing that the husband shall provide a weekly sum of 10s. for the maintenance of the children.

Clause 3 allows an order to be obtained by the husband or the wife if she or he is addicted to the taking of drugs within the meaning of the Dangerous Drugs Act. In other words, the Clause extends the existing provision as to habitual drunkenness to the habitual taking of dangerous drugs. I do not know whether the House remembers, but the Clause was very largely improved on account of the debates which took place when my hon. Friend the late Under-Secretary of state for the Home Department (Mr. Rhys Davies) was in charge of it. Clauses 4 and 5 are purely machinery Clauses to facilitate the means of enforcing orders, and they are based on provisions in existing Statutes.

May I just once more remind the House that this Bill is practically identical with the Bill which received the assent of both Houses in the last Parliament? Therefore, I do not think that at this stage it is really necessary for me to say any more. I believe it is practically non-controversial, and it is certainly nonparty in every sense of the word. I have no doubt that some people outside this House might like to see a good many additions and some extension of the Bill, but I do not feel that we ought to risk the fortunes of the Bill by adding to its scope at the present time. After several years' work upon it, I believe we have at last reached common agreement upon the subject. Therefore, I very much hope that the House will give it a Second Reading.

I only rise to say that, so far as I know, there is no dispute upon this side of the House with regard to the necessity for this Bill. This is not the first time that we have supported the Government, for the very simple reason that so far a great deal of the time of this Parliament has been spent in promoting the passage of Bills of the Government of which I was a Member, and we could hardly be expected to disagree with our n proposals for legislation. Indeed, we are considerably complimented by the fact that the present Government think so well of the legislative proposals of their predecessors that they are devoting so large a part of the time of this House to carrying on what we inaugurated. There are, however, two important matters introduced into this Bill with which the late Government, I think, would have entirely agreed, but which the House should realise. You have here established for the first time the principle that an order can be obtained by a wife while she is still living with her husband. That is a new principle, and you will also find it expressed in the Guardianship of Infants Bill. In the past the wife has had no remedy in law unless she and the husband have actually parted. She would never know what her rights were unless separation had actually taken place. This Bill provides that, notwithstanding that the cruelty or neglect has not caused her to live separately from her husband, yet she can obtain an order. The second point of importance is the question of the children. The cruelty which gives the right, under this proposal for the order may be cruelty to the children as well as cruelty to the wife herself. That is an important innovation as well. The proposals as a whole, as I understand them, are part of a new charter for women, part of which is contained in this Measure and part in the Guardianship of Infants Bill, which we equally heartily support. Some of my hon. Friends will wish to make some comments on it, but I do not think there will he any opposition to the principle of the Bill on this side of the House.

I agree entirely that thin is a Bill which is very much required, and I am prepared to give it my most hearty support, but there is one criticism. I should like to make at this stage, because there is one respect in which I do not think it goes quite far enough. The law under the principal Act of 1895 is that when a woman is applying for an order she is debarred from getting it if it is proved that she has herself been guilty of adultery, but the proviso was added:

"Provided that the husband has not condoned or connived or by his wilful neglect or misconduct conduced to such an act of adultery."

That remains unaltered. This Bill deals with the circumstances under which, when once the order has been made, the husband can apply to have it discharged, and, as the principal Act stood, when the husband applied for a discharge of the order he could obtain it if he proved his wife's adultery. The purpose of the Bill is contained in the second Clause, which says he shall not be able to obtain the discharge of the order if the adultery of the wife was conduced to by the failure of the husband to make the payments that he had been ordered. I think it ought to go further than that. I think the same consideration that applies when the order is being made, namely, that the wife's adultery was to be no bar if her husband had connived at it or conduced to it, ought equally to apply when the husband is applying to have it discharged. The wife's adultery is, as it stands, a bar either to her getting an order or to her maintaining an order if the husband proves adultery, but this Clause comes in and says: "Yes, but suppose the husband is applying to have the order discharged and proves the wife's adultery, he cannot get it discharged if the adultery has been conduced to by the fact that he did not keep up the payments he had been ordered to make." So far so good, but there may be cases in which the husband may have conduced to the wife's adultery even after they lived apart. He may have been cruel. He may have threatened her and forced her into the protection of some other man, and those considerations, according to this Clause as it stands, afford the wife no relief. They would be sufficient when she is applying for an order, but they are not sufficient to allow her to maintain the order when the husband is subsequently applying for a discharge. It is more a point for consideration in Committee, but I hope the Government will consider it and see whether, instead of saying simply that the Court may refuse to discharge the order if the act of adultery was conduced to by the failure of the husband to make such payment it could go on "or was conduced to or connived at by the husband in any of the ways set out in the principal Act." It is quite a simple remedy and l hope that may he done.

I shall be very glad to convey my hon. and learned Friend's suggestion to the proper quarter.

Question, "That the Bill be now read a Second time," put, and agreed to.

Bill read a Second time, and committed to a Standing Committee.

British Empire Exhibition (Guarantee)

Considered in Committee under Standing Order No. 71A.

[Captain FITZROY in the Chair.]

Motion made, and Question proposed,

"That it is expedient to amend the British Empire Exhibition (Guarantee) Act. 1920, and the British Empire Exhibition (Amendment) Act, 1922, by increasing from one hundred thousand pounds to one million one hundred thousand pounds the amount up to which a guarantee may be given thereunder, and by providing that those Acts shall have effect as if they had authorised the giving of a guarantee in respect of any loss resulting from the holding of a British Empire Exhibition in the years nineteen hundred and twenty-four and nineteen hundred and twenty-five." [ King's Recommendation signified .]—[ Mr. A. M. Samuel .]

This Resolution gives rise to a good deal of misgiving in many quarters of the House, mainly because of the surprising discrepancy between the expectations with which we all saw the exhibition opened and the immense loss which is now recorded. On looking through the main items of expenditure on the exhibition it appears that the capital cost is mainly responsible for this very heavy deficit. The expenditure at the outset has been far in excess of what was estimated at the time, and when the Government and private firms and institutions and Dominion Governments were asked to enter into guarantees the estimate on which their guarantees were based came to nothing like the figures which are now laid before us for sanction. How the miscalculation has arisen, perhaps the Minister can tell us. Indeed, I think it is hardly fair to ask us to pass the Resolution without having a full and detailed statement as to the way in which this very heavy deficit has arisen. There is divided opinion in many industrial districts as to the utility of the Wembley Exhibition. There are a good many people who think the money was thrown away. A great many of the firms who were prepared last year to exhibit are not prepared to do so again. They regarded the exhibition as very largely a place for amusement and not a place in which serious business could be done. On the other hand, there are in some trades men who are actively engaged in placing orders and finding customers, and who found that the exhibition was of the greatest possible advantage to them. How far that can be true of all British industry I cannot say. Perhaps the Minister has formed a much wider opinion than is open to any of us, but it is quite clear that if the Government guarantee is to be given in the coming year we must know that it is for serious business and not merely with the object of providing a most excellent place of amusement for people who live in and around London and the excursionists who come to London for the ostensible purpose of going to Wembley.

The total amount we are now asked to authorise would provide for an immense amount of work in other directions, and unless the Minister can show that one result of the exhibition being opened again this year will be, not only to impose no extra charge upon the private guarantors, but that the State is not to be put in a worse position than the private guarantors, I hope the Committee will hesitate to allow the Resolution to go through. I know communications have passed between the exhibition authorities and private guarantors pointing out to them that if they are prepared to continue their guarantee for 1925 the amount of the guarantee will not be increased and that, indeed, they could not be in a worse position, if they were nominal guarantors for 1925, than if the exhibition had closed down in 1924. The point I wish to put is this. If that limitation is given to the private guarantors and firms who are concerned—banks, institutions, and so on—who guaranteed in 1924, that it will involve them in no more expenditure than if the exhibition had closed down in October last, why should the Government be expected to exceed the amount of last year's guarantee? Indeed, what is good enough for the private guarantors ought to be good enough for the Government. I hope the Minister will be able to give some better justification than has yet been made public for asking the Government to undertake what private guarantors will escape from.

I think it is very unfortunate that the Minister in charge of the Resolution has not opened the discussion, and explained more fully what is the meaning of his White Paper, that, does not give us the information to which we are entitled as to the demand for the addi- tional 1,000,000 and as to the figures that appear in it. The right hon. Gentleman who has just spoken alluded to the guarantee given last year, but the only thing that happened last year with regard to adding to the British Government's guarantee was to get the Financial Resolution through the House, and the Bill was never passed, so that the position is to-day exactly what it was three years ago, and the Government have only up to now guaranteed £100,000. That, I suppose, is the reason why we have a demand for an additional £1,000,000. But I think the Minister should explain what is the meaning of this nearly £3,000,000 which has been spent on the site and on construction. We ought to know how much was given for the site, from whom it was bought, what has been the cost of the various buildings which have been constructed there, and how far the Dominions and Colonies themselves have contributed or built their buildings. Then I think he might explain the different items under maintenance, such as publicity and buildings and salaries. Further, on the revenue side, he might tell us how much was received from admissions to the exhibition, how much from rent of space and how much came in from the concessions given to those who had charge of the amusement park, and also from the caterers, which was a very large position held by one firm. It is also due to us to know what is the actual position of Lloyds Bank, who, we are told, have advanced £1,800,000. Those are matters which the Minister might deal with, and I expect he will when he comes to reply. The discussion upon this Financial Resolution is the main discussion that will take place on this guarantee. It will give the Minister in charge an assurance that if the Resolution goes through, the Bill which he will introduce will have an easy passage. It is due to as to know whether or not the whole of the Dominions and the Colonies have agreed to come into the exhibition for 1925, whether the exhibitors who exhibited last year are coming into this year's exhibition, or how far they have withdrawn, and what new exhibitors are coming in. We ought to know the conditions under which the Dominions and Colonies are to take part in the exhibition this year. We should also know whether the guarantors who came forward at the beginning, and who before 1924 guaran- teed a sum of more than £1,000,000, are all taking their part this year and allowing their guarantees to stand.

These are questions which I thought the Minister might have dealt with before the discussion started. I know his difficulty. I had it last year. It is very difficult for any Minister to have to answer for the expenditure of other people, particularly when he does not happen to have that control which really ought to be in the possession of the Government when the Government is finding money. It is no idea of Socialism to talk about the Government guaranteeing money, and then to have no say in how the money is to be spent. There is a paragraph in the White Paper which says that the Government have requested that measures should be adopted to strengthen the financial administration of the exhibition. I should like to know from the Minister how far he has been able to influence the board of management of the exhibition, whether his request will be carried out, and what they have done to tighten up the, financial side of the exhibition. There is room, as I am sure he will agree with me, in that matter, and he might see that something is done in regard to it.

Having had experience of the exhibition in 1924, and knowing from official experience the difficulties, I am hoping that some of the difficulties which I experienced may be avoided by the present Minister, in the light of the experience of last year, which is very well known to his Department. A discussion was raised not long ago with regard to the wages conditions at Wembley, and the position taken up by certain concessionnaires at Wembley. This matter was not raised last year until after the exhibition had been opened, and it was impossible at that time to bring the concessionnaires to book, because the contracts had then been agreed upon. This year we are much earlier with the Financial Resolution, and the hon. Member having given a promise to one of my hon. Friends, a few weeks ago, that he would see that something was done in the direction of applying fair conditions of labour to the people who employ at Wembley, it is due to the House to know what has been done.

The hon. Member's position in this matter ought to be much easier this year, especially in regard to the caterers, seeing that he has a large number to deal with, and not one particular firm, who had not the good reputation in this House that many people would have liked them to have had. It is a matter of first-rate importance when the Government are guaranteeing money, especially to the amount of £1,000,000, that they should be able to insist that the Fair Wages Clause should apply to the contractors at the British Empire Exhibition in the same way that it would apply in contracts made by the Government direct. I hope the Minister will insist that, whoever are to be the concessionnaires in the exhibition of 1925, something will be done to see that satisfaction is assured at the beginning for those who are to be employed there.

I am supporting the Financial Resolution without any question. I am one of those who believed last October that the exhibition should be continued in 1925. Therefore, I am supporting the continuance of the exhibition for this year. The House is entitled to be informed fully on the subject, because there are various matters which can be taken up which would be an improvement upon the experience of 1924. One thing which is very necessary at the exhibition is more music. The exhibition was dead for a long time because of the lack of music. The control of the exhibition in this respect is absolutely in the hands of military men. There is far too much militarism in the control of the exhibition and too little of the civilian control that there ought to be. In the matter of bands, we got nothing but military bands. Appeals were made from brass bands in various parts of the country. In the North of England we have some remarkably fine brass bands, which would put some life into the exhibition if they were employed a week each. There would then be some life in the music, instead of the deadness that, one witnessed there during the first few months of the evenings at Wembley. I went many times to the exhibition, often three times a week, so that I have some idea of what the position was. There are very few people who follow a military band, but whole towns follow a good band of the sort that we have in Yorkshire, Durham and Lancashire.

If you want large numbers of people to come to the exhibition you must get outside London. It is not a London exhibition. It is not only a British Empire Exhibition concerning the furthest points of the Empire, but it is an exhibition concerned with the United Kingdom. The great bulk of the people who came last year to the exhibition were from the provinces. The exhibition never reached the London population as it should have done. I hope it will be more successful in this respect this year. If we are to get the people of the provinces to come again to the exhibition, one of the best ways to secure that would be to get outside the idea of having nothing but military bands, and to get away from the idea of hiding a little string band behind bushes, where nobody can hear it. Let us see that the voluntary bands connected with the towns and villages of this country or, at any rate, some of them, the very best, should get an opportunity of coming to play at the exhibition.

I was very pleased to hear the statement of the Minister, a few days ago, that arrangements have been made for the children to come from the provinces, that the authorities have secured from the railway companies facilities equally good compared with last year, and that the contractors who are to provide the provisions from Park Royal are doing it even cheaper than it was done last year. It is due from this House and from those who were and who are concerned with the success of the exhibition, to pay a tribute to the Middlesex County Education Committee for the way they took up this matter last year, and attended to the wants of hundreds of thousands of children who came from different parts of the country. I am pleased to know they are going to do it this year.

There are millions of adults who come to London in connection with the exhibition, and I think a sharp lesson ought to be taught to the hotel proprietors in this city, so that when the public come from different parts of the country or from different parts of the Empire and from other countries they should have some knowledge as to what they are going to be charged when they happen to drop into some of the hotels in London. I tried to excuse the action of the hotel proprietors on many occasions until it was played on myself. When I went to a particular hotel in London, where I have stayed for two years since I became a Member of Parliament, and found that the charge was increased by 50 per cent. I was sure that there was profiteering and that they were taking advantage of the people who were coming to London from the provinces. Many of the people who come to the exhibition measure their money carefully. They have to do so, as working people, and they have to know how they are going to spend it, and when they came up to London to the exhibition for two or three days they do not want to find that the charge of 8s. 6d. for bed and breakfast, which was the charge before, is going to be 13s., 14s., or 15s.

These are matters of real concern in connection with the exhibition. No doubt in this Debate the very delicate question will be raised, as it was raised last year, of opening the exhibition on Sundays. I am not quite as much a Sabbatarian as some people, but I have a love of the English Sunday, and I believe that nothing would destroy the success of the exhibition more than a decision in favour of opening on Sundays. If you pay your money, you want the opportunity of seeing everything, and if you go to the exhibition on Sunday and you find that the Palace of Engineering is not working, you are dissatisfied. I do not want to see the Palace of Engineering working on Sunday. I have no desire that more people should work on Sunday. If the Palace of Engineering and the Palace of Industry are working for six days of the week, they will not be working on Sundays. Nobody will expect that the amusement park will be running on Sunday; but if people go to Wembley on Sunday and they find that these things are not open, that will go a long way to damage the possible success of the exhibition on other days of the week. For that reason, I feel that there is no justification for opening the exhibition on Sunday. If people want to go into a park on Sunday, Hyde Park is far more suitable than going to Wembley and walking about there.

I support this Financial Resolution, and I am hoping that some of the prognostications of the Board of Management will be realised. Some 17,000,000 people visited the exhibition last year under the most shocking weather conditions that could be imagined. If we could have a repetition of the summer of 1921, I feel confident that the exhibition would attract many millions of people. One justification for this Financial Resolution and for the continuance of the exhibition has been the amount of employment that the exhibition has produced. For months, even for years before the exhibition was opened, no few than 20,000 people were employed in connection with the exhibition, and during last year 22,000 people were given employment throughout the whole period of the exhibition. As a means of relieving unemployment that form of employment is much better than giving people out of work pay. It is better that they should be found employment on these lines. There is more justification even than that. The geography lesson that was given at the exhibition to millions of people who had never visited any of the overseas parts of the Empire have laid the foundations among those people and in our children of a knowledge of what is meant by the British Empire. It was a wonderful education and justification of the exhibition.

There is another point. The exhibition had a lot to do with providing trade for our industries. While it is one of the most difficult things in the world to obtain information from an employer in any trade that he is doing well, yet we have the knowledge that many people did do well and increased their trade as a result of the exhibition held last year, and I hope that this year trade may be further encouraged in that way, because after all what we want is to produce work for our people who are now suffering from unemployment, and any means that can be taken to develop trade and provide them with employment is worthy of support. No doubt my hon. Friend will come in for some criticism, but, personally, I feel that this proposal is justified, and, though I have no doubt that we are not likely to lose the whole of the £1,000,000, and I do hope that we may lose none of it, vet I think that what we are asked to do is well worth doing and that it will be in the interests of our country and in the interests of trade to pass this Resolution.

I think that the Committee will agree that we have listened to a very helpful speech, and also agree that thanks are due to the hon. Member for Rothwell (Mr. Lunn) for the way in which he handled this very difficult subject last year. We are to some extent companions in distress, and in asking the sympathy of the Committee now, in presenting the balance sheet for 1924, I am willing to allow, and do allow, that mistakes were made. Those mistakes were made by my hon. Friend opposite, but I go so far as to say that probably more mistakes would have been made had I been in his place. Let me first deal with the dry bones of the financial position which I have ventured to lay before the Committee in the form of a White Paper. In order that there may be no confusion in the minds of hon. Members, I should point out that this Vote has nothing whatever to do with the Vote with which we dealt the other day, which referred solely to the exhibits of the Home Government. This is a Resolution by which the House of Commons authorises the Treasury to guarantee £1,100,000 for the British Empire Exhibition.

While I think it well to respond to the invitation of the right hon. Gentleman opposite and go into the details of this White Paper at some length, it must not be assumed that the £1,100,000 is all fresh money which we are asking from the House of Commons. The original guarantee, which was asked for the exhibition, was £100,000, and that was passed by the House of Commons. Then in May last, for reasons which I will explain later on, a further request was made to the Committee to guarantee an extra sum of £500,000, and the necessary Resolution was passed. That made £600,000, but that Resolution could not be carried into law because the dissolution took place. Meantime discussions had taken place and a decision had been given, to open the exhibition this year, but we had only asked for the amount of £600,000. The right hon. Gentleman asked why are we asking now for £1,100,000, which represents another £500,000. The answer is that when the May £500,000 guarantee was approved of it was not then decided that we should re-open the exhibition in 1925. But, as we have to ask for the £500,000 for the re-opening in 1925, we lump in the £100,000, then the first £500,000, which was authorised by the Resolution passed in May last, and the fresh £500,000, and we now come forward with this Resolution asking for £1,100,000.

£600,000 of the £1,100,000 has been dealt with in the accounts for 1924, and the remaining £500,000 is for the reopening and continuance of the exhibition in 1925. The right hon. Member for Swansea (Mr. Runciman) asked why the expenditure was estimated at so much less than the actual capital expenditure. On this point, may I refer to some figures? The actual original estimate of expenditure on construction was £1,600,000. The actual capital expenditure was £2,950,0000, as set forth in the White Paper. Of that, ££90,000 was, roughly, for land. There was an increase in the amount expended because, to our great joy, all the units of the British Empire came in except the Irish Free State and British North Borneo, and we had to provide buildings and organisation for the unexpected units, and that is the reason of the increase from £1,600,000 to the £2,950,000. There is another reason, and a very good reason. Things had to be done in a great hurry, and you cannot estimate in a hurry. Then, with the best will in the world, it is impossible to know exactly what things are going to cost for an exhibition. Another important factor, with which the hon. Member for Rothwell dealt, was the weather. I believe that out of the 156 days on which the exhibition was open it rained on 90, and the consequence was that expenditure on repairs and replacements and reconditioning ran into a, very large figure.

One of the reasons given to explain why the estimate was exceeded very much is the extension of the exhibition, owing to a larger number of units coming in than was originally expected. How much of the 90 per cent. increased cost is due to that reason? Surely it is a very small proportion. There must have been serious miscalculation.

I should not, off-hand, like to agree with the right hon. Gentleman. I think that a large portion of the increase was due to units which came in, and which were not expected, for which further buildings and other preparations had to be made. Turning to the figures we find that building, equipment, etc., represent a capital expenditure, in round figures, of £3,000,000 and that the expenditure on maintenance was about £1,000,000. Coming to revenue we have received over £2,000,000. If I were running a factory on such lines as these I should be a millionaire in a, short time. Under the form of accounts, which has been adopted, the revenue receipts are expected to cover not only all ordinary revenue expenditure but all capital expenditure as well, which would not be expected in an ordinary business. If I had these figures in the case of a factory, after paying all ordinary expenses I should have made over £1,000,000 profit, and could have put towards the amortisation of capital enough to pay back the whole capital account in three years. Therefore, when people say that, on the figures in the White Paper, there has been a loss of nearly £1,800,000, they must not forget that that includes an amount to cover in one year the total cost of capital expenditure, a form of financing which would not be applicable to any business undertaking.

I would like now to deal with some points which have been raised by various hon. Members. With regard to the advances on over-drafts by Lloyd's Bank may I say that Lloyd's Bank behaved extremely well. Not only did they lend money on covered overdraft, but they went to the extent of advancing money to the amount of £800,000 or £900,000 very largely as an uncovered loan. There is another point. A large number of private people, purely out of public spirit, guaranteed large sums for this exhibition, and there is one body of men who alone guaranteed £100,000. I mention their name because they could not hope to get any direct benefit out of it, and I am glad, therefore, to state that the underwriters of Lloyd's guaranteed no less than £100,000, and I wish to pay them my tribute for doing so. My hon. Friend the Member for Rothwell asked what were we going to do with the buildings. In 1925 the building section will disappear.

I drew attention to the fact that private guarantors were not being asked to guarantee any extra amount this year, and I drew a contrast between private guarantors and the Government in this respect.

5.0 P.M.

The private guarantors came in and guaranteed their money and they have lost their money, and they would not continue now unless we guaranteed this additional half-a-million. But, so far as the right hon. Gentleman's point is concerned, the boot is on the other foot. They asked us to be so kind as to guarantee, and we said, "You will have to guarantee before we go to the House of Commons and ask for power to give a guarantee." In guaranteeing this £500,000 we make the condition that they should continue in, and they have come in, to the extent of 90 per cent. I do not say that there is a chance of our making any money out of this second year, though there is always a chance. I do not hold out any promise of reducing our loss, but, in any event, we shall benefit by the extra advertisement of the British Empire. Another question was raised with regard to what we have done in the matter of financial control. The Treasury have put in a man to watch very carefully, on behalf of the Government, every penny that is spent. He will watch the accounts and tighten up the whole financial organisation. He is a man who is well known to us all, and who has played a very important part in many public organisations under the control of the Government. I refer to Sir James Cooper, a highly competent accountant. He will fight for every penny on behalf of the Treasury, and will report to the Treasury what is done.

No; he is an independent man put in by the Treasury to oversee every penny that is received and spent. He is a very caustic critic of expenditure, and the hon. Member for Ilford (Sir F. Wise) can rest assured that the control has been tightened up considerably since last year.

Further than that, front hour to hour. He has that one job and nothing else to do. The exhibition accounts are audited by a well-known firm; but, so far as the House of Commons is concerned, it has its own watchdog there from day to day, from hour to hour, and from minute to minute, in the person of Sir James Cooper, who will act on behalf of the Government. I agree with the statement that has been made to-day, that the exhibition is a good thing while there are large numbers of men out of employment. Last winter 22,000 were kept at work at Wembley at comfortable wages, and we shall see about 30,000 employed this year. It is an astonishing fact that last year £1,500,000 was paid out as wages to the people working at the exhibition. We received back into the Treasury £70,000 for Entertainments Duty alone. That has been paid in hard cash, and we hope to get more. 15,000,000 people visited the exhibition, exclusive of emplpoyés. Think what that all means! It represents a cost of very little per head under this guarantee.

You cannot estimate the value of the exhibition in terms of money. It was an advertising gesture, and you can never know how the money spent on it will come back. We have a proprietary article for sale, the product of the British heritage, the product of British industry, and we want to let them be known throughout the world. Imagine the immense effect of the exhibition upon the foreigner! He sees Britain, barely through a war which has shaken the world to its foundation, quietly settling down to the arts of peace imperturbably unshaken, confident that she can, apart from the word money, make complete success for Imperial purposes of this difficult undertaking just as she has achieved success in a world war. I am certain that this £1,100,000 will be returned in money over and over again, though we do not wish to talk in terms of money. If we were to do so, one single fact might be stated. Of the 15,000,000 people who visited the exhibition at least 100,000 were foreigners. They must have spent in this country £10 each. That is about the £1,000,000 back again. I have no doubt that we have had our money back time after time. While the Committee look into the accounts I think they will agree that the hon. Gentleman opposite (Mr. Lunn) and all under him did their best to make the exhibition a success, and that we must not look upon the balance sheet of a matter of money as the evidence of our real profit or loss.

I entirely agree with everything that the Parliamentary Secretary to the Overseas Trade Department has said in support of the exhibition, but equally with him I am axious that the taxpayers' money should be expended to the best advantage. I think we can congratulate ourselves that at last we have had what purports to be a balance sheet of this exhibition. Figures have been placed before us to show what happened during last year. I do not think that we can congratulate ourselves altogether on what those figures relate. The Minister says that the exhibition has been an enormous success, and that it is impossible to get back in one year the capital expenditure. He compared the exhibition with a business, and said that no business would expect to get back capital expenditure in one year. But the exhibition is not like a business. It is only an exhibition, which was intended originally to be open for one year and which is now being extended to two years.

I hope that the Committee will bear with me while I seek to analyse somewhat closely the figures that have been put before us. I think I am correct in saying that the two guarantees, the private guarantee and the guarantee that this Committee is now asked for amount approximately to £2,200,000. Last year there was a debit of £1,800,000. Suppose we take the cost of maintenance in 1925 as approximately the same figure as that in 1924, which is £1,000,000, and the amount of the duty outstanding as £150,000, and put in another £150,000 for 1925; we get a total expenditure of £3,100,000, which we may expect to have to meet. The receipts in 1924 were £2,100,000. That would leave a net loss of £1,000,000. Against that there is a guarantee of £2,100,000. That means 10s. in the £, which we shall lose. That is what we have to face. Suppose that the exhibition of 1925 attracts as many people and takes as much money as in 1924. We hope, of course, that we may have better weather and get more, but when we are dealing with finances which are supplied by the taxpayers we have to look at a question not only in the best light but also in the worst light. I do not think I am putting it in the worst light by saying that the probability is that we may have to lose one-half of the guarantee now asked for, or £500,000.

It is said in the White Paper that the Government guarantee will rank, pari passu , with the guarantees given by private guarantors. I want to ask this question: What is the position of the site and buildings as regards the guarantors? Are we to have any lien given us for the site and buildings, to meet the probable loss that we may expect? That is a very important point. I understood from the Minister that the advance originally made by Lloyd's Bank was made with a cover, which I understood was a mortgage or lien on the site and buildings. Suppose that the advance made by Lloyd's Bank is paid off; then I think that that mortgage on the site and buildings should be put behind the guarantors to cover to that extent the money which we may expect to be a loss. I was glad to hear that the financial administration of the exhibition was to be strengthened. I only hope that the measures which have been taken and the nomination of this independent accountant will have the effect anticipated. It is no use going into past matters, but I think we all know that the financial administration has not been as strong in the past as it might have been. In fact that is admitted in this White Paper. We trust that in 1925 there will be a much closer watch kept over the taxpayers' money, or what may be taxpayers' money, than in 1924.

This is a non-party question, and because of that I feel a little freer in criticising this proposal than I should be otherwise. I remember attending a meeting at the Mansion House four years ago, when this scheme was first launched officially, with the Lord Mayor of the day in the chair, and Lord Milner and the light hon. Member, who was then President of the Board of Trade were present for the purpose of blessing the scheme. I was bold enough to get up and oppose the whole conception of a long period exhibition. To my sorrow, when the question was put to the vote, I could get only one other person to hold up his hand with mine. I believe it is true to say that for many years past no long period exhibition in any country in the world has been other than a failure. In my own business experience I have had some opportunities of studying the exhibition problem, and from time to time I have managed exhibitions—not exhibitions on this scale, but short period exhibitions confined to a certain product. That kind of exhibition, reasonably well managed, properly advertised, and so organised that you get to it the kind of people who are interested in the products exhibited, does bring about very satisfactory results for the exhibitors. But the general exhibition which includes, for example, a palace of engineering, where 99·9 per cent. of the people who see it are mere curiosity-mongers and are deeply impressed because they see a lot of shining tubes and things of that sort, but have no technical knowledge and worry the attendants by asking useless questions, and who belong to the category of literature snatchers, as the attendants dub them, are no use at all from the commercial point of view.

I am inclined to think that the Empire Exhibition was of very much greater value to the Dominions and Colonies than it was to us. It is true that it did bring before the people of this country a conception of the Empire which they had never possessed before, and if this Vote were an education Vote I should support it with very much greater pleasure than a Vote which comes under the control of the Board of Trade. I sincerely doubt whether the home producers have derived from this exhibition any advantage commensurate with the enormous expenditure which they incurred last year. Quite apart from my general criticisms of long-period exhibitions, I submit that the Empire Exhibition was badly managed. I happen to be connected with a firm which had a small exhibit, and one met with constant complaints from exhibitors that there was muddle and confusion. Quite apart from that circumstance, the lay-out of the grounds was deplorable. The hon. Member for Rothwell (Mr. Lunn), who was largely responsible to Parliament for the exhibition during the time it was open, has said that the Londoner did not go to it. Of course, he did not go. There was nothing there to attract him. In the days when Earl's Court and the White City were open hundreds and thousands of people went night after night either for the purpose of having the evening meal there or of sitting out and listening to a band and enjoying themselves in a pleasant way. It is easy to do so on the Continent, but it is difficult to find an opportunity of doing so in this country. No one would be attracted to Wembley for that purpose, and if we should have a summer like that of 1921 it will be even worse than the summer of last year, because everyone will be covered with dust.

As a believer in economy I am a little sorry that the Government have committed themselves—and I realise they have committed themselves—to supporting the exhibition for another year. We have made a failure from the point of view of home trade at Wembley, and I think we are taking a great risk in going on with it. The novelty has gone, and I very much doubt if the thousands of people who last year came in charabancs and other conveyances from all over England and from even further afield will come again. The only hope of large attendances is that the exhibition should succeed in attracting the London public as it failed to attract them last year. As one who was connected with an exhibitor's stand I was the privileged possessor of a season ticket, but not even that fact would induce me to visit the place more than three times. On two of these occasions I accompanied friends from the country, and I only went once of my own volition, that being for the purpose of seeing whether the stand in which I was interested was in a decent part of the show. I am sorry to find myself criticising the Government in regard to this proposal, apart from which I am one of their loyal supporters, but as this is a scheme for which all parties are responsible, and for the partial failure of which all parties are responsible, I feel free on this occasion to give expression to the criticisms in which I have indulged.

I rise not so much for the sake of criticism as to obtain information. The hon. Gentleman the Secretary to the Overseas Trade Department hopes the exhibition is going to be more successful this year than last year. I ask him how many of last year's exhibitors have already indicated that they are not going to exhibit this year? We are being told of exhibitors last year who are disappointed with the results and who declare their intention of taking no further part in the exhibition. Can the hon. Gentleman state how many are likely to withdraw? The hon. Gentleman also referred to the response from the Dominions and Colonies. Is it true that some of the Dominions and Colonies have likewise been disappointed with the results and have indicated that they will take no part in the exhibition this year? The last speaker made a very good point when he mentioned that the novelty of the exhibition would be worn off this year, and as 15,000,000 people have already attended it, there is not likely to be anything like that attendance this year, even if we are favoured with fine weather. The hon. Gentleman opposite gave some information in regard to the employment of labour which I did not quite understand. He referred to the fact that last year the exhibition provided work for about 22,000, and I understood him to say that this year it ought to provide work for 30,000. Perhaps I was mistaken in the figure, but it seems to require some explanation. A good many complaints were made last year as to the wages and general conditions of the workers at the exhibition. The hon. Gentleman has already said that in regard to finance the utmost stringency will be exercised, and I should like to know is the same stringency to be exercised to compel those who employ workpeople at the exhibition to give them fair wages and proper conditions?

While I wish the exhibition every succes in the future, there is one point on which I should like to have information. There was a considerable expenditure upon the creation of the exhibition and, in the result, it attracted large numbers of the public. One set of people who presumably made a large profit in those circumstances are the people who had the catering, more particularly as in this particular instance that department was all in the hands of one party. Can the hon. Gentleman give us any idea, as to what was the profit made by the caterers and, if not, can he at any rate state what percentage of profit went to the management of the exhibition?

The management were in a much more favourable position in regard to the catering than my hon. and learned Friend imagines. Speaking from memory, I think the Government were in the position of not being concerned one way or the other whether the caterers made a profit or not. The management were in the much more favourable position of just taking a percentage of the gross receipts,

Can we be told how much the receipts were? Were no returns made at all? The arrangement which the hon. Gentleman mentions seems to have been admirable, but we should like to know what was the result.

I cannot give the amount, because my hon. and learned Friend's question has been sprung upon me. I will make inquiries, and if the hon. and learned Gentleman presses for the information he shall have it. But as to the result, the answer is much more favourable than he seems to realise. The management could lose nothing over the catering, because they simply took their share out of the gross amount of receipts whether there was a profit or a loss. The question of caterers' profits was immaterial to them. They were concerned only with the gross takings.

It is the first time we have heard of that fact, and one is delighted to know that it was so.

Yes. I give every credit to my hon. Friend the Member for Rothwell (Mr. Lunn). I think he did his best. I am even willing to say that if the hon. Gentleman did make mistakes I am prepared to shoulder them with him for if I had been in his place I should possibly have made more mistakes than he did. A question was put to me by the hon. Member for Doncaster (Mr. Paling) as to the number of firms exhibiting this year. In the Palace of Industry the Association of British Chemical Manufacturers is again organising the chemical section. The Bradford Chamber of Commerce is again exhibiting in the woollen section but on a larger scale. The Government of Northern Ireland has doubled the, space which it had last year; the food section in the Palace of Industry will be on a larger scale, the jewellery and pottery section will be somewhat smaller: but, speaking generally, the Palace of industry will he nearly as full as last year and might even be quite as full were it not that the authorities have replanned the area in order to allow a freer circulation for the safety of the public. In the Palace of Engineering the central exhibit will be the housing section. We have given up the separate building section and have put it in the Palace of Engineering amalgamated with the housing section. There will be, a very interesting exhibition in connection with the railways appropriate to the centenary year. Other representative firms and organisations are taking space and I hope, if the space is not so fully occupied as last year, that there will be lettings to a substantial extent. The hon. Member also put a question with regard to the employment of workers, and there seemed to be some misapprehension in his mind about the figure of 30,000. Last winter about 22,000 were employed and this year 30,000 will be employed. I have not yet seen the hon. Member for East, Middlesbrough (Miss Wilkinson) and the hon. Member for West Islington (Mr. Montague) who are to interview me on the subject of working conditions, but I am seeing them, if it is convenient, next Tuesday or Wednesday. I must impress this upon the Committee, that the Government were not and are not responsible for the policy of the exhibition. I want to emphasise that point. That is solely in the hands of the exhibition authorities, and the head of that committee is the Duke of Devonshire, the other members being Lord Stevenson, Sir Charles McLeod, Sir Henry M'Mahon and Sir James Allen. I am glad to say that, to the very considerable satisfaction of everyone in this House, the right hon. Gentleman the Member for Derby (Mr. J. H. Thomas) is also a member. Consequently the Committee is assured that everything connected with the exhibition will be overlooked by gentlemen well known to us all, and in whom the House and country have full confidence.

Is it a fact that the cotton section have refused to exhibit in the coming year?

To say they have refused is, perhaps, to put it too harshly. I think the cotton section certainly have not, up to the present, intimated an intention of shoving machinery or the working of the cotton, but I think we have their support and sympathy in every way. The hon. Member for Orkney and Shetland (Sir R. Hamilton) asked a question in relation to the guarantors. The guarantors can be called upon within a year after the closing of the exhibition. When the assets have been ultimately realised, they will be reimbursed pro rate in so far as proceeds of realisation are sufficient, or, in other words, the assets will be used in the reduction of their ultimate liability.

That is to say, it will not be a definite security in the same way as in the case of the bank? Will it be definitely charged to the guarantor?

I think that is so, speaking offhand, that is, of course, if it is not subject to any other charge. I do not think there is anything more I can say. I have done my best to answer every point, and perhaps the Committee will now give me the Vote.

In regard to the replanning of the Palace of Industry, will that include a re-arrangement of the traffic, as there was considerable congestion last year at the bakery and confectionery section.

I think the area is being re-arranged in order to provide a more convenient passage way.

Question put, and agreed to.

Resolution to be reported To-morrow.

Poor Law Emergency Provisions Continuance (Scotland) Bill

Order for Second Reading read.

I beg to move, "That the Bill be now read a Second time."

I do not think there will be any difference of opinion upon either side of the House as to the necessity for the continuance of this Measure, which is a Measure further to extend the duration of an Act passed in 1921, and it has been in successive years renewed by various Governments from both sides of the House. I think also it is beyond dispute that, unfortunately, the condition of unemployment, particularly as it affects the able-bodied unemployed, though it may have shown some measure of improvement, is still a serious problem, and, as the House will realise, the parish councils, apart from these temporary provisions which have been passed in recent years, have been prevented from giving relief to the able-bodied unemployed. Therefore, we are asking for the continuance of this Measure, and on the main principle of it I should imagine there would be general agreement. It is perhaps right that I should say that we propose that this Measure shall continue for a period of two years instead of being renewed for one year only. There are advantages in that course, not only because of the difficulties of renewing such Acts, but because it will give a longer time for us to consider the rather larger and wider problem affecting the whole system of Poor Law relief.

There is one other small point to which I would draw the attention of hon. Members, and that is that we propose that the power of the parish councils in this respect shall be extended, not only where the labour is direct, but where it is under contract, and the reason is that unless it is so extended, there are many local authorities who have represented that they are greatly hampered because a great number of the works which they are carrying out are not by direct labour, but by contract labour. Therefore, on these two points there is some departure from the previous proposals of the Government, and I trust the House will give us a Second Reading of the Bill in order that it may go to the Scottish Grand Committee, where these points of detail may be adequately discussed.

The last point raised by the Secretary for Scotland, as to the provision minimising what was in the last Act with reference to the employment of direct labour, is, I think, a mistaken policy, and I am sorry that the right hon. Gentleman has gone back on what was agreed to by this House. I think he said that some of the local authorities had made representations that they would not be able to carry on work unless they were allowed to do it by contract. In that case, I would point out that, under the ordinary contract work of a, parish council, this provision does not apply at all. It applies only where the work is in the nature of relief work and where it is done for the purpose of providing work for the unemployed. It is only then that the direct labour proposal of the late Act applies, and I am very sorry indeed that the Government should be making the mistake of altering that provision. I am not aware that any of the leading local authorities in Scotland have made direct representations as to the difficulties of carrying on work under the last Act.

With regard to the continuance of the Act, I am glad that it is being continued for two years, but I do not think it is at all fair, while that is being done, that the Poor Law authorities of Scotland should be saddled with this continual expenditure. It is a responsibility that ought not to be put upon them, and that they have declaimed against all the time. It has been costing the ratepayers, in the large centres at least, where unemployment is rife, a tremendous amount of money, and it has added very considerably to the rates. We have been told in this House that there is likely to be for a long period, an indefinitely long period, at least one million unemployed persons in this country. The share of that in Scotland is going to be very considerable. In Glasgow, at the moment, there are something like 70,000 persons unemployed, and in the valley of the Clyde there must be something riot less than 100,000 people, all told, who are unemployed. It is here that the great burden of unemployment's found. The shipbuilding yards, in spite of the fact that they produced more ships last year than in almost any previous year are employing a greatly reduced number of men. We have to make provision for these men, and it is being thrown on to the parish councils. The Government have made their difficulties, I submit, still worse quite recently by the action of the present Ministry of Labour with regard to unemployment. They are tightening the reins and taking such steps as will increase the number of people who will not be getting unemployment relief, and that means still further burdens charged upon the Poor Law, which is already overburdened.

I submit, under these circumstances, that it is time that a new policy with regard to the treatment of the unemployed in Scotland, in so far as Poor Law relief is concerned, was initiated, and I wish that, in the two years that are going to elapse, the Government would make provision to cease turning the able-bodied unemployed into paupers in Scotland, with all that pauperisation in Scotland means, and with all the degradation attached to it, a degradation which, I believe, carried on for a period of time, produces an effect that tends to sap everything that is worth fostering in a man. Once they have become paupers, the tendency is for them to remain paupers and to lose their grip on things. On this point, therefore, I object to this particular Bill as it is drawn, particularly in regard to that portion which makes optional, instead of compulsory, the employment of direct labour. I wish the right hon. Gentleman would consider this matter and give us a reply, if not just now, at least during the Committee stage, and that he would then be able to say that, after consideration, he had decided to revert to what existed before.

I trust the hon. Member for St. Rollox (Mr. Stewart) will lead us into the Division Lobby against the Bill, and that we will not stop at pious objections to the reactionary part of Clause 1, but show our disapprobation of that Clause by voting against it. The Clause means a direct encouragement to parish councils in Scotland, and the most reactionary of them at that, to hand over all relief works to private contractors. That means that profit is going to be made out of these relief works by the private contractors, who are there to make money and to see what they can skin out of the relief works provided by the community on behalf of the starving unemployed. It is obvious that the private contractor is not necessarily going to employ the most necessitous of the unemployed. When he is giving employment, he does not select a man because he has got 10 of a family, because his economic circumstances are extraordinarily bad, because he is hopelessly in debt or because big family is in starvation. Not at all. The personal, family circumstances are given no consideration whatever by the private contractor, who is out to take, let us say, the healthiest, the most capable, the strongest, man for the job.

I submit, therefore, that, in the first place, it is bad public policy that the, community should be left with the poorest, the most physically debilitated section of its citizens, who cannot get a job, and who will not get a job from these private contractors. When they are given a job, as the result of public pressure through the newspapers, or as the result of local agitation, they are only kept on for a day, and are then promptly sacked, and told by the foreman that they are physically unfit for the job. So they become permanently unemployable, and land for ever upon the local rates. I submit that that is bad public policy, and that it is a hope- lessly reactionary step that the right hon. Gentleman is taking, when he is even giving the option to the parish councils to spend public money by handing out the relief works to private contractors, to allow them to make profit out of those contracts, and to select, as they inevitably will, the fittest men physically for the jobs, leaving the men who ought to get the jobs, so far as their economic circumstances are concerned, outside altogether. What happens is this: The young man of 18 or 20, physically fit, gets the job, and the married man with ten of a family is left outside and gets no job at aft. It is heartbreaking. I know some of these cases, of men who wander from Spring-burn to Dalmuir looking for a job, perhaps when the Glasgow Corporation tramways are extended. They go there day after day, and there is no work for them. The foreman looks at a man, and says: "No, you are not physically fit." He does not ask that man: "Have you ten of a family, are you in starvation, have you pawned everything, are you in debt all round, or are there two or three consumptives in your home?" No humane consideration enters into this business at all immediately the right hon. Gentleman admits this principle of private contracting in our relief works, and I trust that on this ground alone, our front Bench will lead us into the Division Lobby to-night against this most reactionary Clause 1.

Let me carry this a step further. I asked a question in this House the other day of the Secretary for Scotland, about a Dundee case, where he had refused to give financial assistance to the local authority, who were prepared to employ nobody but unemployed men in the making of cement blocks for house building purposes. Here is a case in point. A local authority says, "We will make cement blocks, as we are short of building material. Here is first-class relief work. We are short of houses. We need these blocks, and we will guarantee to employ only men given us by the Employment Exchange." The right hon. Gentleman says, "No," he will give no assistance to that scheme, or any such scheme, on the ground that housing is already a subsidised industry. We have had instances before in Scotland, where works connected with house-building have been subsidised so long as they were meant for private profit. A municipality which does not want private profit, and is prepared to employ its most needy citizens in doing this work, must, however, comply with the right hon. Gentleman and his Government, who stand first for private profit, the right of private contracting, and are prepared to scrap the system of a previous Government compelling the local authorities to go in for direct labour.

I partly represent in this House a city where 95 per cent. of the young men, when they reach the age of 18, are sacked. They can get no jobs. These are official figures supplied to me by the local Employment Exchange. Why? Because, when they reach the age of 18, they are entitled to 14s. 4d. increment, and they are immediately sacked, because employers can get cheaper boy and girl labour from the schools. They, therefore, sack the semi-adult labour at 18, and then the Government step in and pay the unemployment benefit. It is the most stupid proposal, from a financial point of view, that ever I saw. The Government will not step in to help those lads to get a job. They will do nothing to provide employment for them. They will prevent the Corporation of Dundee, which has not a Labour majority on it, but a majority of Liberals and Conservatives—[An HON. Members: "A Labour Lord Provost!"] I do not know whether that is so or not, but he is the sanest Lord Provost I have ever seen. The corporation certainly has a non-Labour majority. This corporation is not encouraged by the Government to go in for relief works to provide necessaries, so long as no private profit is made, and I submit that, in these circumstances, this House ought not to give a Second Reading to this Bill—a Bill which further intensifies the difficulties with which we are faced in Scotland, a Bill which encourages an extension of the infamous principle that the unemployed are only to get relief if a private contractor can succeed in making a profit out of them. I submit that is bad public policy, and that this House ought not to give the Bill a Second Reading.

I wish to ask the Secretary for Scotland a question about the Bill. It is, of course, perfectly obvious that the incidence of unemployment is very unevenly distributed and in an industrial district is much heavier than in other districts, where, possibly, the resources of the local authorities are greater. Does the right hon. Gentleman not consider, therefore, that the time has come, or is rapidly coming, when he should consider, as the central authority for Scotland, whether some assistance should not be given to the authorities who have this unduly heavy burden cast upon them? That, in a word, is the point, and I think it would relieve the anxiety of a great many industrial districts, where the burden is exceedingly heavy, and, because heavy, they are heavily rated, and the resources of the people who are rated are very slight, if some, central assistance could be given, so that the burden could be more equally distributed over those who have to bear it.

I want to add my voice to those who have opposed the suggested Amendment of the Poor Law Provisions Act. I think this is a matter of very great national importance. The Bill is not one that bulks very largely in the affairs of this Parliament, but the principle involved is a very vital one, namely, the question of the treatment by the State of its more unfortunate citizens. There is no suggestion anywhere else that in relief works done by corporations and other local governing bodies there should be this limitation. A municipal corporation anywhere can make its own arrangements either with a private contractor or direct labour. It is only when the Poor Law starts to come into conjunction with general unemployment relief that it becomes necessary to have some special safeguard, and it has always been, I think, since the very beginning of the Poor Law in this country, a recognised principle that it was bad public policy to subsidise wages out of public Poor Law funds.

I want to ask whether there has ever arisen any problem with which this Clause seeks to deal in the whole of Scottish Poor Law emergency relief of unemployment, other than one case in the city of Glasgow, where the Glasgow parishes were attempting to make a deal with the Glasgow Corporation. If there has only been one instance in the whole experience of Scotland of the administration of the Poor Law Emergency Provisions Act, where this Clause has operated harshly, it seems to me that it is a very wrong thing to make a special amendment of the law, and set up a vicious principle in our dealing with Poor Law questions, in order to make right one very special case arising in very special circumstances, which the Glasgow Corporation could have settled themselves locally by merely reversing a decision to which they had previously come. It seems to me quite unfair to this House that we should be asked to upset national legislation, to subvert what have been long-established principles in Poor Law administration, merely because one local governing body refuses to rescind a resolution to which it had previously come, and I want to ask the Secretary for Scotland if the problem has ever come before his Department on any other occasion, or in any other way, than in the one casoe to which I have referred.

6.0 P.M.

The Secretary for Scotland, I think, failed in his remarks to distinguish between the two sources that give us our unemployment. Uppermost in his mind, and governing his remarks, was the usual argument of unemployment through bad trade. The Bill with which we are asked to deal to-day is not honestly a continuation of an Act. If it had been to continue the Act up to 1927, it was not necessary to show in that continuation a change at the end of 1927. On this question of the contribution of unemployment from two sources, one that is always permanent, especially in industrial centres like Glasgow and Dundee, is the continued improvement in production, which displaces men. We have, for instance recently in Glasgow adopted a new method of making gas for our city, and by that method a certain number of men have been displaced. Just as it is true in that instance, so is it true in other big works in that city which are adopting the latest improvements in production. Therefore, I want to draw the attention of the House to that which contributes to unemployment altogether outside of what is called the slump in trade. No Government that wants to deal fairly with the unemployment question can for a moment neglect this constant contribution, because in that respect you are not having displacement through unfitness in the worker. You are losing, in the case I have mentioned, men skilled in operations with certain plant, which is now being replaced by newer plant. That man cannot be called the ordinary unemployed man. That man should either take the name of the "displaced" man, or some other title. The provisions of this Bill having left that out from its purview, it does not, on that account, deal with the real unemployed question. The late Under-Secretary in his speech mentioned the fact that we are going to have at least 1,000,000 unemployed men for many years. That, however, is not based upon the displacement element which has taken place. That is based upon what is called trade good and bad. But our local authorities have to face, for instance, this question in the steel trades. A big steelworks in Glasgow is going in for improvements, the secret of which was let out in the Press last week. The new plant is at works which are seven miles across country from the present place. In place of the old machinery working, say, 200 to 250 tons per day, the new plant, with about half the men, is going to produce 5,000 tons of steel per week. Here you have the permanent displacement of men. The poverty that comes in the case of people who have been employed in work like this is quite distinct and different from the gradual poverty that is brought about by the flux of trade where the man is gradually reduced to poverty. He is paid off for a week; then he goes on for a couple of weeks or a month, and that is the gradual approach and type of poverty that carries with it the gradual degradation of the man.

This other type of poverty brought about by displaced men is quite different. The man who has been trained to a certain operation is displaced, and perhaps he has reached years when he may be getting grey or having to use spectacles. The picture of that man in his search for employment is one of those things that makes the heart bleed—that is the heart that feels. To say that this man—or this class of men—is to be forced to become a pauper through no fault of his own is to cast an insult on the man that I am sure no hon. Member of this House desires to cast upon any honest working man. I appeal to the Secretary for Scotland to take this Bill again into consideration. I appeal to him to take it back, to broaden out the view, to take away from it the pauperising element that it contains, and I suggest, and hope, that he will make it a Bill that will be able to deal with all the cases in the particular place or area.

On the question of direct labour, may I say that the displaced man has always a chance where there is direct labour, but he never has a chance where there is contract labour, as has been already said. From personal experience I can say that when it comes to the question of a private contractor, let the man in charge be ever so humane in his feelings, let him be in possession of all the emotions that can be brought forth by seeing distress in a brother, yet he has got instructions that the work must he carried out at a certain cost. He has got his instructions that he must employ only those who have the greatest physical efficiency, because the class of work we are discussing is mostly such as demands the highest physical qualities. I appeal to the right hon. Gentleman the Secretary for Scotland once more to take back this Bill and give it that human touch which is now absolutely necessary. I ask that he should take into consideration the facts I have mentioned and of this compulsory poverty of people through no fault of their own which we have got to face.

There are two very serious objections to this Bill which the Secretary for Scotland has submitted for the consideration of the House. The first is that only in a temporary way does it seek to deal with the permanent problem. The work of providing relief far the able-bodied unemployed does not arise so far as the English boards of guardians are concerned. This House is not repeatedly being troubled by legislation every year or two so far as the English problem is concerned. Boards of guardians in England, so far as I understand, have always had the right to assist the able-bodied unemployed. We had not that right in Scotland up to 1921. A Bill was then introduced, which is referred to in this Bill, for the purpose of giving power to do what has been done for many years in England. This Bill before us now only seeks to extend the power of dealing with the able-bodied unemployed in Scotland for another two years, and the problem will still remain in Scotland—the problem of dealing with the able-bodied unemployed. It seems to me that we are wast- ing Parliamentary time in discussing a Bill which only seeks to extend for two years provisions which are necessary so long as capitalism remains. We ought to have permanent legislation for dealing with the able-bodied unemployed in Scotland.

The second grave objection to the Bill is that the Act it seeks to amend, the Act of 1924, is not yet six months old. That Bill was passed through this House when the Labour Government were in office, but the Opposition against us was two to one. Still, it was a Bill accepted by the House, and now, six months from the time of the passage of the Bill, the Government seek to amend the provisions of the Act which made it compulsory before a grant could be made—[HON. MEMBERS: "No!'] Well, I am open to correction later. It now makes it optional for the parish council to have contract labour, or, on the other hand, ordinary labour. My experience as an administrator has shown me the trouble that we—and when I say "we" I mean the hon. Member for Kirkcaldy (Mr. Kennedy) and myself—have in seeking to get the particular grant that is being given for dealing with unemployment in the Borough of Kirkcaldy. I recognise that no contractor goes into business for the love of providing work for the unemployed. I recognise that he does not enter into business as a philanthropist. He enters into business because he wants to make the greatest profits he can. He can make a greater profit out of not only the able-bodied unemployed, but—shall I say—the able-bodied unemployed man that is best suited for the particular job for which he has got a contract. That is the result of the experience we have had in Kirkcaldy.

We recognise that the contractor took not only the labour belonging to Kirkcaldy, but labour belonging to all parts of Scotland—and for some distance outside Scotland—and left the burden of unemployment on the local ratepayers to remain practically the same. We have, then, the difficulty of getting the grant made good, because of the fact that the contractor took the best labour available, irrespective of whether it belonged to Kirkcaldy, or was unemployed, or otherwise. It may be right or it may be wrong to apply the condition of direct labour so far as contracts in connection with public authorities are concerned, but I submit to the House that it is not good to leave it optional for the contractor to deal with the able-bodied unemployed, and to allow him to make a profit out of the tragedy of unemployment so far as these able-bodied unemployed are concerned.

I do trust that the Bill will be withdrawn and not place hon. Members of this House in a fix—although I suppose it is the duty of the Government to place the Opposition in a fix, or rather in the peculiar position in which we find ourselves. I am anxious, at least as one Member, to see the provisions extended to powers that will provide benefit and parish relief allowance for these unemployed. I want, I say, to see that extended. On the other hand, I do not want to see an amendment of the Act passed in 1924 which makes the contributions payable by the parish councils contingent as suggested. I want to see the unemployed get the fairest chance possible. I want to see the man who is really being hard hit by unemployment get a chance. If he be not presentable, no contractor will take him, but a matter of three months' decent work and decent wages may mean making a physically unfit man physically fit again. I want to see that done so far as the unemployed workmen are concerned. For these reasons, I trust the Government will withdraw this Measure, and come back with a Bill, not only to extend the provisions of the 1924 Act, so far as giving power to relieve unemployment is concerned, but that they will give us a Bill that will permanently deal with a permanent problem.

I remember very well when the principal Act which is referred to here was brought in. Lord Alness was then Secretary for Scotland, and we were feeling the force of unemployment. By the old Scottish law, it was not competent for the parish councils to give parish relief to able-bodied men. As the last speaker has reminded us, our law, therefore, in that respect, differed from the law in England. Lord Alness brought in that Bill, a Bill to which this is a continuation, in order to meet that point in face of the very grave unemployment with which we were threatened. The people who were dealt with in that Bill are outside the unemployment scheme altogether. They are the people who are unfortunate enough to have to appeal for parish relief. The Bill was passed. Unfortunately, it has had to be extended more than once. This is a proposal to extend it for a further two years.

The speakers opposite have dealt, it appears to me, with one point only in the Bill which we are now discussing. They have dealt at some length with the modification which it is proposed to introduce in regard to direct labour or contract labour. It appears to me that their proper course would be to vote for the Bill, or to allow this Bill to pass through, so that our parish councils may be still empowered to deal with cases of able-bodied men who are without employment, and then, when the Bill comes before the Standing Committee on Scottish Bills, they ought to propose an Amendment to omit all the words after the first 12 lines to which they object. That is a matter for discussion in Committee. It appears to me that that is the true aspect of the case with which we have to deal at the present time. For that reason, I feel bound to support the Bill, so as to allow it to come before the Standing Committee on Scottish Bills, when we can consider the question of contract or direct labour.

Last Session we had this question before us, and it was necessary to point out the peculiar situation that arose in connection with circumstances in Scotland, of which there was a development in the City of Dundee. When representations were made to a Member of the Government to see about the rectification of this injustice to Scotland, he made the remark, in answer, that he was not aware of such a difference between the law of Scotland and the law of England. An undertaking given then that in preparing the original Bill the idea would be to reimburse from the National Exchequer outlays made by the local authorities, but that has never been fulfilled, and it stands to-clay as a distinct grievance in Scotland, apart from any other aspects of the Bill. Dealing with the Bill as it now is, I heartily support my colleague in the representation of Dundee (Mr. Johnston) in his references to the call that has been made for some time upon the Scottish Department to see about facilitating the grant for those who are really doing good work in the preparation of those concrete blocks for the housing schemes in the City of Dundee. It is strange that a Government which is urging local authorities to produce work should have refused a call for an additional grant, which would have been used in the employment of men to produce blocks for the housing department, and have resulted in a reduction of the number of unemployed.

In regard to the matter of contract labour, I concur with those who have spoken on the great importance of this matter as one of principle. We cannot have it too strongly emphasised, and the right hon. Gentleman must be cognisant of the fact, that in dealing with these relief schemes this matter is one that requires to be handled with great consideration for the different degrees of disability under which the men are suffering through long endurance of unemployment. You cannot get from such labour the return which a private employer naturally demands for the payment of wages; you cannot get that from a varying number of men, who are in the predicament of being unused, in many cases, to the heavy class of work which is most generally provided for the unemployed. They are unused to that work, and, if you are going to be as exacting as representatives of some local authorities insist on being, you will exclude some of the cases most deserving help. It is imperative, if you are going to do this work on the lines referred to in this Bill, that this point should be reserved for handling by the local authorities. It looks to me as though there is a strong effort on the part of the forces on the other side to go forward with the application of this private enterprise business, whereas we have in the past seen some degree of advance in municipal and local authority enterprise. Such a step would really be reactionary, and it would mean to these very people, about whom we are all understood to be so much concerned, an embargo upon their calls for help under such a Measure as this.

The hon. Member for Peebles (Mr. Westwood) spoke about dealing temporarily with what is, under the present system, a permanent trouble, the question of unemployment. Is Scotland in this, as in other matters, to be left dragging along in a position where she does not know where she stands? For years England has been fixed in her position, and the representatives of English local authorities have been enabled to deal with this matter, if to a limited extent, at any rate on a definite plan. Scotland, on the other hand, is in that haphazard position which I find seems to be the standard for Scotland in so many matters. It only emphasises once again the great disadvantage under which we stand here as representatives of Scotland. The Government are strong in numbers—whatever it may be in moral courage is another matter—and we are always told that we can only be practical when we have got the numbers. Now that the Government have the numbers, cannot they face a job of this sort? There is a proposal to exalt the status of the Secretary for Scotland. I do not think that will make very much difference in this matter, unless he decides, with his own indomitable perseverance, to tackle the question on different lines. I am against the Second Reading of the Measure for those reasons.

I desire to appeal to the Secretary for Scotland to make some concession to us in connection with this Bill. I do not think he wants to press the matter to a Division. It has already been suggested that only one case, which has come before the Scottish Office, has been the means of producing this proposed alteration in the Act. I would like to say, also, that he might give us a pledge that our country shall be put into a different position from that which it occupies at the present time, of having to come to Parliament every year, or every second or third year, asking for this sort of legislation. With their prospect of a certain measure of permanency, which was denied to their two immediate predecessors, the Government should be able to take the long view and put Scotland on the same basis as England in a matter of this kind. In my days as a minister I had a striking instance of how harsh and callous the old Scottish law was in this connection. A man, his wife and family in the south of Scotland were in very difficult circumstances. The man, who had been unemployed for a long period, went from one person to another to get their assistance towards finding employment, but things were bad in the south of Scotland at that time, and nobody could get him a job. Yet, because he was an able-bodied man his wife and family could obtain no relief from the parish council. The minister to whom I was assistant said the only course that lay before that man in order to get provision for his wife and family was for him, say, to go into the street and smash a window, or commit some crime, and get put into prison, when the parish council would be able to make provision for his wife and family. I submit to the Secretary for Scotland that, with the Government in their present position, having so much support in the House, he should certainly give us a pledge that he is going to take this matter into consideration, in order to put the provisions with regard to relief for able-bodied people in Scotland on a permanent footing.

With regard to the alteration, I do not suggest that the Minister should take back the Bill and submit it again to the House, but, as a compromise, I suggest that he should give us the assurance that he will reconsider it with a view to taking this part out in Committee. This alteration was put in, I think he will agree, mainly because of the special circumstances which arose out of the Glasgow case. I am emboldened to make that appeal to the Secretary for Scotland, because I am quite sure my plea will he supported by the Under-Secretary, who is sitting beside him, for I remember that the Under-Secretary was responsible for the position which is now going to be altered by this addition. I think we are all anxious to get provision made for able-bodied unemployed people in Scotland, and I do not think we are going to get anything out of this alteration. The position is this: If a contract be made, under the terms of the contract the contractor has to take so many of these able-bodied unemployed. The contractor knows perfectly well that some of these people, while they may come under the category of able-bodied, are not as fit as others, and he would not take them if it were not for the terms of this contract, feeling that he could get more suitable able-bodied people elsewhere.

There is, therefore, in this matter a subsidy to wages. The contractor will ask a bigger price. Possibly he would be prepared to take the contract for £80,000 if he could obtain his own labour and were not trammelled in any way; but if he has to submit to certain people being employed he may say, "Well, I shall need to get £100,000." I do not think this is good business. It is a very bad principle for this House to establish, the subsidising of wages in this way. The contractor is anxious not to make a loss on his contract, and, being a bit uncertain about the amount of work he will get out of these unemployed people, because of their having been unemployed and become defective in physical well-being, he begins to try and get out of his responsibility. A man is employed for a day or two, and then the contractor suggests, "The work is not going forward as it will have to go forward if I am to get out of this safely," and so the foreman is instructed to throw off so many of these people. I do not think this kind of thing is good business, and it is establishing an unsound principle.

The only way in which we can really deal with these people who are in this impaired condition and give them a certain measure of justice is by the local authorities themselves being responsible, and then the question of profit, on the job does not come in at all. I suggest that the Secretary for Scotland should assure us that he is contemplating the passing of permanent legislation, so that the Scottish Poor Law may be put upon a more humane basis, as has been the case in England for years, and that he will reconsider this matter with a view of taking out during the Committee stage this proposed alteration.

It was only at an early stage to-day that I appreciated what a very serious matter is dealt with in this Bill. It seems to me to raise a point of such magnitude that it is surprising that more hon. Members have not had their attention directed to it. This question was introduced by the Parliamentary Under-Secretary for Health, Scotland. I have noted in the OFFICIAL REPORT what he said, and his words show what a very important matter this Bill raises. It seems to me that it raises a question which certainly is worthy of the attention of every hon. Member of this House. It suggests that one of the best methods of remedying unemployment to-clay is to allow the local authorities to subsidise private contractors in their payment of wages, and this is to be done in what is merely a continuation Bill. The original proposals were introduced in 1923, and they were extended last year for 12 months without alteration, and it is now sought to extend the same provisions for another 12 months.

What is now proposed is directly and diametrically opposed to the pledges given by the Parliamentary Under-Secretary for Health in 1923. The Act of 1923 is very well worth looking at. It provided that the parish council might make arrangements with the local authorities to deal with unemployment, under which arrangement the parish council might make a contribution specifically limited to the amount which the council will have to pay for the maintenance of any destitute able-bodied persons out of employment—therefore, the amount was directly proportionate to the unemployment which it was sought to remedy—and they might make a contribution to the local authority if they did work, or if the council itself did work similar provisions applied. The contribution, however, was not to be made except in eases where the labour was employed direct. Nobody could object to that in principle, but I notice in the OFFICIAL REPORT that when the hon. Member for Kelvingrove (Captain Elliot) was Under-Secretary for Health in a previous Government he said, on the 26th of March, 1923: fact, it is a stupendous proposition that the right way to deal, with unemployment is to subsidise wages. I do not want to minimise the importance of this vitally important principle, but I hope that this Bill will not be allowed to pass without at least a far more careful consideration being given to it than has been given to it to-day. As far as I am concerned, I shall certainly oppose this Bill as it stands. It is quite true that there is an immense amount to be considered in Committee, but how on earth this provision is going to be worked and put into any conceivable shape which will safeguard the subsidies made and ensure that they are used merely for the unemployed absolutely passes my comprehension. There are matters which may be put right in Committer, but this question of principle cannot he put right in that way. A suggestion has been made that we should remove the last 12 lines of the Bill.

I did not say that. I said we might retain the first 12 lines and omit the rest.

Then that means the whole Bill. But for that, all that is required is the continuation clause which appeared last year and has appeared for a number of years. It is a fundamental alteration which cannot be dealt with by Amendments in Committee. I know many things can be raised in Committee, but I also know that in Committee any opposition we raise will be absolutely valueless with regard to any Measure. I am not saying this contemptuously, but it has to be recognised. We know that in any Division we shall certainly be defeated, bet I feel absolutely satisfied that of all the Members who go into the Division Lobby to-night not 1 per cent. will realise that hidden away in this little Scottish Bill is a proposal that one of the ways to deal with unemployment is by paying a subsidy on private contractors wages. We were told on a previous occasion by the representative of the Government that it was not the intention to give subsidies to any scheme without it is being carried out by direct labour. Surely this Bill is a direct antithesis to that proposal. As a matter of fact, it is the precise opposite from what the Under-Secretary said, and I hope this Bill will not pass without a great deal more consideration being given to it than has been given to-day.

I rise to direct attention to the question of the continuation of the Act itself. A great deal has been said in favour of taking the responsibility of providing work for destitute able-bodied persons out of employment in Scotland. I am not sure that the provisions to continue this Act for three years is a good one. If two years are allowed to elapse before the Scottish Board of Health take any steps to deal with this problem, I am sure by the end of two years, if the present rate of unemployment continues, the Scottish Board of Health will be faced with a very acute situation.

I would like to put to the Minister in charge of this Bill one or two considerations. First of all, there is the question raised by one or two of the financial provisions to relieve the able-bodied unemployed by a payment made through the parish councils. I remember that last year an appeal was made for financial assistance to the parish councils. Take the case of Greenock or Glasgow. Both those places are overloaded with debt, and neither of them can face the terrible burden of their debt. Take Govan parish, which is probably the worst of all. In April this year Govan parish will be faced with a debt of £700,000. In spite of what was done by the Labour Government under the Unemployment Act, that debt has increased. Even within the last month under the new regulations made by the Labour Ministry those debts have increased.

We are faced with this further problem. Govan Parish would not even be so bad if it had some powers of extending, but what is happening? Each week sees Govan Parish becoming poorer and poorer. I see the hon. and learned Member for East Renfrew (Mr. MacRobert) here. What is happening in Govan Parish is that the folk who can afford it, whose wages are good—like civil servants, school teachers, and business men—are leaving Govan Parish because the housing conditions are better outside, and are going to live in the hon. and learned Member's constituency. The consequence is that the whole burden of keeping the poor is being thrown on to poorer people still, and Govan Parish to-day—a parish which I represent here—is second only to Poplar in its poverty problem. In Lanarkshire, in places like Hamilton, exactly the same problem is arising, and you have this position: We have a debt of £700,000, and it would be bad enough in all conscience if we had to meet the repayment of that £700,000, but the Goschen Committee, which was set up to grant loans for this purpose, are charging Govan Parish 5½ per cent. for their money. We have Glasgow people investing in the Post Office Savings Bank, and all that they get in return for that investment is 2½ per cent.; but when the same working folk need the money for the purpose of relieving poor people they have to pay 5½ per cent Last week we discussed the Irish Land Purchase Bill, under which money is to be lent at 4½ per cent. to buy out landlord and mineral rights. That money is lent at 4½ per cent, for the purpose of buying out these people, and at the same time our parish councils in Scotland are being charged 5½ per cent.

Their problem is that they cannot go on. In my division the poor rate at the present time amounts to 5s. 7d. or 5s. 8d. in the £, and they are contemplating increasing that rate to over 6s. in the £, but when I go to the division of the hon. and learned Member for East. Renfrew, or the division of the hon. Member for Cathcart (Mr. P. MacDonald), what happens there? My folks have been ratepayers in Govan for 40 years. I nave their house, where they are hard put to it to meet their bills, and go to the Parish of Cathcart—a penny ride in a car—and I meet folk who are financially far better off than my folk, and who are all receiving their income from the City of Glasgow. and I find that they are only contributing 5½d. in the £. as against almost 6s. You cannot defend that, and it is a part of the problem raised by the policy in regard to Scotland. I do not want this to go on for two years, or even for 12 months. Never mind this Bill continuing for two years Govan Parish is faced with bankruptcy and ruin. Even the members who represent the reactionary party, as we are termed, on the council—and the Secretary for Scotland is partly representative of the Govan Parish Council, because most of the area that he represents is in Govan Parish—these men are being faced with a responsibility that they cannot carry on any longer. The whole problem is outwith; it is becoming too great; and it is not sufficient for any Scottish Member to come here and say, "Wait for two years." It is your duty to start at once and see haw far this problem can be met.

A simple Bill continuing able-bodied provision is of no use; there must be a Bill which will face the problem of rates and the problem of national and local expenditure. I ask the Secretary for Scotland to give the parish councils this guarantee, that the money that is being lent to them by the Goschen Committee should at least be lent free of interest. The parish councils are prepared to pay the money, but surely there is nothing extraordinary in asking that that money should be lent to them by the Government free of interest. It is not an extortionate demand. They are prepared to pay every penny back: all that they ask is that the money should be lent to them free of interest. You have this position at present, that the Goschen Committee who are lending the money are charging more to the parish councils than the private banker charges. They have an overdraft at the moment at less than 5 per cent., and the Goschen Committee are actually charging them more. The scandal of sheer interest robbery is being perpetrated by a Government Department.

I want to say a word in conclusion with regard to the direct labour question which is really what is being raised by the corporation. I was a member of that body for 4½ years and I put it to the right Icon. Gentleman that that question was raised in relation to the Glasgow-Edinburgh road. I want to give a concrete example of what will happen in Glasgow if this Bill is carried as it stands. It will mean that the work will be given to private contractors. Who gets the private contract? I understand—I may be wrong—that three out of four contracts have gone to two firms namely, Messrs. Shanks and McEwan and Messrs. McAlpine. Firms that get such contracts carry them out in order to make for themselves as great, a profit as possible. The morality of that may be right or wrong: it is not our business to question it, At the moment the Clyde Trust is carrying out a contract at Shieldhall, and what is happening there? It is given to private enterprise, and, despite the Ministry of Labour Regulation that 75 per cent. of the labour is to be employed under certain conditions, the management of the Exchange are constantly in friction with the firm, because the firm will not carry out the Regulations, as they say the men they are getting from the Exchange are unprofitable for their purpose. I met the management, and I met the chief engineer to the Clyde trust, and there has been a great deal of irritation, while the contributory authority are getting no benefit in return.

The parish councils contribute this money not merely to make a road. The road itself is not the first objective. The contribution is made for the relief of unemployment first, and the road comes after. Our job is to see that that money should be spent in the proper way. After all, if the money that is provided by the parish council is to be paid over to anybody at all, it should be transferred from the purpose of relieving people in order to be given to the same people in the form of wages, and unless you have direct labour that cannot be done. We tried it on the Bowling Road, when I was a member of the Glasgow Corporation, and the same thing went on—grumble, grumble, grumble, that they could not get the proper men. They made use of any excuse to bring in what they termed pivotal men. The hon. and gallant Member for North Lanark (Sir A. Sprot) says, let us deal with this in Committee. I would agree if it were an ordinary principle, but the question of subsidising the wages paid by private contractors—and here Englishmen ought to join with us—ought not to be settled by a Scottish Grand Committee. If it is going to be done it ought to be done by the whole House, and afterwards by a Committee representative of the whole House. It is unfair, it is wrong, it is bad in principle and contrary to the nature of Parliament. If you are going to have a national Parliament, a great principle like this ought to be settled in a separate Bill, drawn up by the Minister of Labour for the whole country; Parliament ought itself to take the responsibility of applying it all over the country, and it ought to be done, not by a Committee of Scottish people, but by a Committee representative of the whole House.

I want to compliment the Under-Secretary on the work which he, I think, has done in helping to draft this Bill. He used to be a Fabian, and he understands the position which we on these benches take up and the attitude we adopt in criticising the present conditions; and he knows perfectly well, from his previous knowledge of the whole situation, that, so long as Capitalism exists, so long are you going to have unemployment. I see from this Bill that it is only intended that it shall be extended for two years. Am I to understand, or is the House to understand, that it is the opinion of the Under-Secretary for Scotland, and that he has also convinced the Secretary for Scotland, that Capitalism is only going to remain in Scotland for the next two years—that we are going to have a Socialist state in Scotland in two years, or shall I say from the 15th May, 1927? Is that the hon. Gentleman's opinion? Is that the opinion of the Secretary for Scotland? If it is, I am quite certain that we on these benches will gladly vote for this Bill if it can be guaranteed that unemployment in Scotland is going to be at an end and a Socialist state is going to be in existence.

Apart altogether from that, I would suggest to the Secretary for Scotland that the principle contained in this Bill is one of the worst principles that has ever been advocated by any Government in this or any other Chamber. I want to ask the Secretary for Scotland and the Under-Secretary quite honestly and sincerely if they would undertake to defend a Bill brought into this House which carried out the same principle with regard to private employment—if they would guarantee a Bill that some employers, or all employers, should have paid to them on Government contracts a subsidy to assist them in paying wages? Would the Secretary for Scotland advocate that principle in this Horse? If, say, the two firms of contractors mentioned by my hon. Friend the Member for Gorbals (Mr. Buchanan), Messrs. Shanks and McEwan and Messrs. McAlpine, came to the Government and asked for a grant or subsidy to assist them in paying wages, would the Secretary for Scotland and the Under-Secretary agree that that subsidy should be paid? Why, they would be immediately upon their feet denouncing the principle as being subversive of sound finance. They would denounce it upon every occasion, not only if it were brought in by their own Government, but, in those wonderful declamatory passages in which the Under-Secretary usually indulges when criticising anyone on these benches, if we were in power and were bringing in such a Measure.

7.0 P.M.

Take, for example, a thing that happened only recently. A very large order, round about £100,000, went to a firm in a foreign country. That would have meant giving considerable employment to workpeople in this country had it been possible for the firms in this country who were tendering to obtain that contract. What happened? The British tender was £6,000 more than the tender sent in from abroad, and the contract was given to the foreign firm. I want to ask the Secretary for Scotland and the Parliamentary Under-Secretary for Health if either or both of them would have agreed to make up to this British firm what they would have lost on the contract if they had taken £6,000 or £7,000 off the price of the contract and thereby have been able to obtain work for the workpeople in this country? Would they have come forward in this House and advocated that that sum should be made up to that firm? Both of them know that they would have done no such thing, and that no one on that bench would have come forward to this House and attempted to justify such a claim on behalf of any firm in this country. The right hon. Gentleman and the hon. Gentleman come before this House to-clay and ask us to vote money that is in essence subsidising firms in he payment of wages to working people in Scotland. You are taking us back in the history of this country for 100 years. You are going back to the day before the Factory Acts were passed, when employers had the wages of their work-people made up out of the Poor Rate. You are going back to the days when children were taken from the poorhouses and worked in the mills and factories, and their wages made up out of the Poor Law.

This is an enlightened age in 1923 with a great Tory Government with over 200 majority, and subsidising—whom? Contractors who are grinding the poorest of the poor deeper and deeper into the mire. Have either the right hon. or the hon.

Gentlemen gone through Shieldhall Docks and seen the conditions under which men are being employed at 11¾d. per hour, working in many cases up to the thighs in mud and filth of all kind; men taken from the Govan Employment Exchange, employed for two or three days, and then dismissed as unsuitable, and their unemployment benefit stopped for a week until we are able to put before the rota committee and the insurance officer the full facts of the case, and get that money paid them along with arrears. All the time they are unemployed, waiting for a decision of the unemployment committee, they have to go on the parish—and that is the Govan Parish, spoken of by the hon. Member for Gorbals (Mr. Buchanan) which the Secretary for Scotland, together with the Members for Gorbals, Tradeston (Mr. T. Henderson), and myself represent in this House—and take out of these poor people who are paying rates the money to make up what has been taken from them by this firm of Shanks and McEwan.

The Clyde Trust, for whom the work is being done, were dissatisfied at the rate of progress made. They were going to have an inspection. What happened? On the Friday night, too late for unemployed workers to be notified, application was made to the Employment Exchange for 40 men for Monday morning. The men were notified on the Saturday and sent to the job on the Monday. The inspection took place on the Monday, and, as soon as the inspection was over, on the Tuesday, Wednesday and Thursday the men were dismissed in batches until the whole 40 had been dismissed as unsuitable. They had served their purpose. There had been 40 men there over those usually employed, and, when the Clyde Trust inspectors were looking at the job, there was a large number of men there, and they thought more men were employed than actually were working. The consequence was that complaints are being made by this firm of the nature of the unemployed workers being supplied to them by the Govan Employment Exchange.

Direct labour would cure this. Shanks and McEwan are paying the lowest rate for this class of work, and you are wanting us to subsidise it, while right across on the other side of a paling a new road is under construction by another firm, and there is 2d. difference in the rate of pay per hour for the same class of labour coming from the same exchange. Can you justify that? If one employer can pay it, so can another. I want to suggest to the Secretary for Scotland that in view of all these circumstances, instead of trying to delete that which he himself assisted in having put in the Act as it stands, he should endeavour to put forward safeguards that will still further safeguard not only the local parish councils but also the rights of those sent from the Employment Exchanges. I could understand the Government endeavouring to suit and please their friends. This is not a case of friendship. This is not a case where the Government are being asked to pay. This is not a case where grants are going to be given by a Government Department. This is a case where parishes already overburdened with debt are going to be asked to burden themselves still further. This is a Bill which is going to place upon unemployed people, upon low-paid people, and upon respectable working-class people who are living in districts that are most heavily rated in Scotland, the whole burden of hearing their own unemployed.

The Member for Gorbals spoke correctly when he said that this is not a Scottish question only. This is a national question. There must be sooner or later a unification of rating. The right hon. Gentleman himself will see the absurdity of one part of his own constituency paying 6d. in the £ in rates, and right across in the street immediately adjacent to it, almost 6s. in the £ being paid. In one part of his constituency are residing people who are merchant princes in Glasgow and well able to afford to pay 6s. in the £ and never miss it, but are escaping with 6d., white unemployed people, low-paid people living in streets adjacent to those drives are having sent into them notice papers asking them to pay 6s. in the £ in rates. Can von defend that? Can the Government defend it? This Bill is going to continue it for two years.

I would not suggest that you should lot the Bill go to Committee? Why should it go to Committee? If the Bill be unsound in principle, if it be absurd in its financial methods, withdraw the Bill and go forward with something that will he decent, fair, and will spread the financial burden of maintaining unemployment, over the hacks of the people most able to afford it, instead, as has been done in the past and is being continued in this Bill, of placing the burden on the shoulders of those least able to bear that burden.

I am convinced that even the people of Glasgow, even the Corporation of Glasgow, and the parish councillors of Govan would applaud the Government action in withdrawing this Bill if they thought they were going to bring in something which would assist in unifying the rating system and enabling the heavier-rated places to carry on their burdens with some assistance from those places at present escaping. The right hon. Gentleman knows that I live in his constituency. He is my representative in this House. I went to the polling station, but as the ballot is secret I am not going to say for whom I voted. I merely mention that to show that I know the constituency. He knows perfectly well that living in drives in his constituency are people who have made fortunes out of Glasgow. They are living upon the interest of the fortunes thy have made. They are living in retirement, in many of those big mansions in Dumbreck and Pollokshiels. He knows that those people are escaping with a few pence in the £ on the rates, while in Pollokshaws, a working-class area of his constituency, they are paying very heavily by the rates placed upon them.

I see on the other side, for a wonder in a Debate of this kind, the serried ranks of Scottish legal representatives, and I hope we are going to have what may be looked upon as a meeting of Scottish Cabinet Ministers to discuss and determine whether this is to be continued or be withdrawn. I hope it will be withdrawn, and that the Government will bring forward a better Measure instead of this Measure, which has been dedicated to a reactionary element in the Glasgow Town Council, who tried to get us to withdraw our opposition to any amendment they would bring forward and the, removal of this particular provision that you are now seeking to remove. This House is being asked by the Glasgow Corporation, through its representatives, to amend an Act of Parliament passed in agreement practically by all sections of this House, by Tories, Liberals, and Labour. All that was necessary and all that is necessary even yet to safeguard Glasgow and enable it to enjoy Acts already passed is to rescind one of their standing orders. Because the Glasgow Corporation have not the courage or the manhood or are too reactionary in their majority to rescind a standing order of their own, they have prevailed upon the Scottish Officers of the Crown to come forward with an amendment of the law for Scotland. I appeal, therefore, to the Minister to withdraw the Bill, and intimate at some future date the introduction of another Measure that will go in the direction which it ought to go and will carry with it some financial provisions to lighten the burdens of the heavily-rated parishes.

There is hardly any use in an appeal being made to the Government to withdraw this Bill. Not a single Member opposite has risen to say a word in favour of this Bill. My hon. colleague from Lanark (Sir A. Sprot) certainly did not give the Government support. I know it would be rather dangerous for him to do so.

I recommended the House to pass the Bill, and I said I would support it.

The hon. Baronet said the speeches which had been delivered from this side of the House had been directed only to one point, and I quite agree that he suggested we could deal with that point in Committee, but I think the implication of his remarks was that when it went to Committee he would be favourable to meeting us on the claim we were putting with respect to the point which had been raised in the discussion. But there is only one point in the Bill. There is nothing else referred to but the question of making it easy for public money to be paid to contractors out for a profit along the lines of Shanks and McEwan, large contractors all over Scotland, and Sir Robert McAlpine, who is well known as being the principal factor in the disturbance on Clydebank. He is to be subsidised with public money for the payment of whatever individuals he may be prepared to select who happen to be unemployed. I am again surprised that the hon. Member, who claims a monopoly of being anxious to safeguard the interests of ex-service men, should be favourable to the passing of this Bill, because the one man who will not be accepted by the private employer is the ex-service man, and particularly the dis- abled ex-service man, and I am surprised that the Secretary for Scotland should have introduced this Bill without first making full inquiry in all the areas in Scotland which are really affected by unemployment.

If you take the whole of the parishes in Scotland, there is a comparatively small number which are really affected by this problem. It is only the industrial areas which are really affected, and only part of them. It is not a Glasgow problem at all. It is a problem affecting industrial areas both in Scotland and in England. So far as England is concerned, it is in a very much favoured position compared with Scotland, and we are only asking, being members of the same Empire, having given and made quite as many sacrifices as our English fellow-countrymen, that we should at least in a matter of this sort have no worse conditions imposed upon us than apply in England, particularly as it will affect a very large proportion of the men who have become more or less useless for ordinary employment, particularly in abnormal periods, because of their service to the country.

I could have understood the silence on the part of the Government if they had had any support from their own Members, but there is no one who is prepared to argue, apparently, in favour of this Bill, and it would be a mere waste of time to refer it to the Standing Committee on Scottish Bills if the views of Scottish Members as a whole coincide, as I think we are entitled to claim that they do. I therefore hope the right hon. Gentleman will agree to withdraw the Bill. The provision for its extension meets with our approval, and if the right hon. Gentleman would introduce a Bill to deal with the question in a much broader manner he would get the support of hon. Members on this side. We shall be willing to do everything we can to make his work light in the matter, but he cannot expect us to accept a Bill which is a direct breach of the principle not merely enunciated by themselves when in power prior to the coming of the Labour party into office but which had their sanction and support during the passage of the Bill last year which is proposed to be amended by this. During the recent Election there is not a Member on either side who ever suggested that there was a possibility of a change so far as the disposal of money granted to parish councils for relief purposes is concerned. It would be a breach of confidence on the part of the Government. We are quite willing to meet you if we can make more easy the onerous work that applies to your Department, but if you want to get our assistance—and I am sure you do—it is only reasonable that you should not attempt in a bank-handed way to introduce something which we are bound to look upon as a matter of principle. I appeal to the right hon. Gentleman again to withdraw the Bill in the meantime, and I can promise him, if he will meet us on that matter, that he will not have any captious opposition or criticism when the Bill again comes before us. Otherwise, there does not seem to be any choice, notwithstanding that we want an extension of the time, but to vote against the Government, and we prefer to take an entirely different course. I hope the Secretary for Scotland will be prepared to make some concession along the lines which have been asked on this side.

I propose to say a few words in reply to the Debate, which I think it must be admitted has been conducted in a very friendly spirit on both sides. I am a little at a loss to understand why there should be so great a feeling of opposition among hon. Members opposite to the proposal around which the main part of this discussion has centred. In dealing with this problem I had to consider, from perhaps a fresh point of view, the circumstances which surround many of the difficulties in connection with unemployment in Scotland. I was satisfied that it was essential first that the Act should be continued for a period because if it were to lapse one of the provisions for helping the able-bodied unemployed would definitely disappear from the purview of those of us who are interested in this question. I then had to make up my mind whether the procedure of previous Governments should be followed of only renewing it for a year. I came to the conclusion, looking to all the circumstances of the time, that it would be more desirable to extend the provisions of the Bill for two years, from the very practical point of view that if those of us who, for the time being, have the responsibility of administration are going to bring before the House any well-considered Measure for the revision of rating and of any question of Poor Law, undoubtedly it is reasonable that we should have that time given.

I was informed that considerable difficulty had been experienced in giving a measure of employment to the able-bodied men because it was limited to direct labour. The representations came, no doubt, from the local authorities themselves. Reference has been made to the particular case of the Glasgow and Edinburgh road. I am not myself conversant with all the details of it, but surely the fact that they were unable to take advantage of it meant that an opportunity for employment was denied to a considerable number of men. After all, this Bill, as we propose it, does not take away any opportunities for employment under direct labour, but it extends and gives an opportunity for an additional opening for employment, and it was only the other day that the Board met the inspectors of poor of some of the principal industrial centres in the West of Scotland and they were unanimous in expressing the opinion—these men who, after all, have had direct experience of carrying out this work—that unless these provisions could be extended, as I suggest in this Bill, in a large measure the work would be inoperative. Under those circumstances, this proposal is made and I think, after the discussion to-day and the opportunity it has given for the ventilation of differing views upon the problem, it will come before the authorities in Scotland and those who are most intimately concerned with this problem, and that undoubtedly the right and proper course to pursue is to give the Bill a Second Beading and then it can be most fully considered when it goes upstairs. Various hon. Members have appealed to me to withdraw it. I have most carefully considered the problem, and it is our view that this method of dealing wish it will net depart from the past opportunities which men have had of being employed and that it will open a fresh avenue of employment. I can see no practical reason which will debar the parish council in conjunction with the local authority making such stipulations and regulations with any contractor working under a municipal authority as will adequately safeguard the interests of these men. The hon. and gallant Gentleman the Member for Leith raised the question as to the difficult position which some of these heavily burdened authorities find themselves in. I am very sensible of many of these difficulties. These matters are receiving most careful and sympathetic consideration on the part of the Government, but I am not in a position to-night to say anything further on that matter. I trust that, whatever difference of opinion there may be upon this point, the House will now give a Second Reading to the Bill.

I am very pleased indeed that the Secretary for Scotland has seen fit to extend the operation of the Act for two years, but I am very disappointed that in making provision for the extention he has seen fit to make the change he has made. The employment of direct labour, in the opinion of my colleagues and myself, on relief works ought to be done by local authorities and not by private individuals. In making a change of that kind, the right hon. Gentleman must have realised that he would be up against difficulties. He was bound to realise that we on these benches could not be consenting parties to so important a change. The Parliamentary Secretary for the Scottish Board of Health two years ago found himself up against the same difficulty. The representatives of Labour from Scotland fought as keenly two years ago the very point that they are fighting to-night. To suggest that we should give a Second Reading to the Bill and allow time for opinion to be crystallised between now and the Committee stage, is not giving a real answer to the point that has been made. What we suggest is that the right hon. Gentleman should withdraw the objectionable part of the Bill. If he is prepared to do that, we are prepared to assist him in getting the Second Beading, but unless he is prepared to do that we have no alternative but to divide the House.

The point raised is one of a very vital character. We do not believe that money that is being raised from rates for relief work should be spent by anybody other than the local authorities. It ought to be impossible for any contractor to be able to make profits from the money raised by the rates in connection with relief works. The money so raised is, in many instances, raised from very poor people, and, surely, the money ought not to be used for the purpose of providing profit for any contractors. In making the change the Secretary for Scotland is trying by a surreptitious way to get a little of the work that was outside the hands of private enterprise back into the hands of private enterprise. I fear that is his object in making this important change. That is a vital issue between the opposite side of the House and this side, although we have not raised it from that point of view. It has been clearly pointed out by hon. Members on this side that we do not object to the local authority, outside the particular point we are discussing, engaging contractors to do certain work for them. We are not raising the wide issue, but I fear that the Secretary for Scotland in making this change is, in a surreptitious way, trying to deal with that wide issue. I hope that the right hon. Gentleman will promise that in Committee he will be prepared to delete the objectionable Clause.

This Debate has widened very considerably from the fundamental point upon which objection is taken to the Bill. The latitude which has been allowed to hon. Members to refer to matters which may not be considered strictly relevant is largely due to the fact that on this side hon. Members appreciate that the Secretary for Scotland would not have introduced a Bill containing so objectionable a Clause, a Clause which flies right in the face of the practice of this country for the last 80 years, were it not for the fact that the Government of which he is a member has not had the courage to face the two large national problems which are indirectly referred to in the Bill. This Bill would never have been introduced but for the fact of the extreme poverty and the extreme amount of unemployment which exist to-day. It is well that the House should understand some of the peculiarities which exist in Scotland with regard to both these problems. If you have a national problem, the very best motto which you can adopt when tackling it is the motto that it is Rood to hear one another's burdens. We see the awful effects which come from the disregard of that excellent motto in some of our constituencies in Scotland.

We are still in Scotland working our parish system under the old ecclesiastical territorial divisions. We have not yet reached the stage when the parish, which was formerly purely an ecclesiastical area, has been reconsidered in the light of modern municipal developments. Many of my hon. Friends on this side have had experience in the Corporation of the City of Glasgow. I am still a member of that Corporation, serving now in my 16th year, and all the time we have been faced with the great difficulties that arise by having one municipal area divided into several parish areas, so that while you have, with our ad hoc educational authority, the municipal area a unit, and the educational area a unit, you have the parish area, dealing with the problems of poverty, with the mental defectives and other things, butting in from the county areas into the municipal area, and you have the most extraordinary divergence of financial responsibility placed upon citizens of the same city.

Looking at that position in the light of the two great national problems, you find that where the area is poor the operation of these two problems is making it poorer, and where the area is financially well-off, you have little change. For example, take a parish where the people are poor, a parish inhabited by artisans, skilled and unskilled. You have there, naturally, a large burden upon the parish authority, relatively to the burden placed upon the parish authorities of another area, such as that represented by the right hon. Member whom I have the honour to call my representative in this House. There are very few poor people in some of these parishes. In the Parish of Cathcart, for example, you have almost the whole area inhabited by people of the middle-class standard of life, and of more or less comfortable circumstances. You have a neighbouring parish inhabited by artisans and unskilled workers. They are poor, anyhow, and the parish rates are always heavy because the natural demands of poverty are heavy upon them: the natural demands, I mean, by people who become poor through illness or accident, through the death of the breadwinner, or old age. In the other areas, the people do not go to the parish when these circumstances befall them.

Thus, the normal charges upon the poor areas is a very heavy one, and when, combined with that normal charge, there is an additional charge on account of unemployment in industry—because it is exactly those industrial areas that feel the burden most, especially where, as in the case of Govan, a large number of the population is employed in the heavier industries that have been particularly hard hit—you have an area which is inhabited by poor people, and a parish which has a large normal burden having that burden accentuated by unemployment. People who are already so poor that they have had to go to the parish for relief in order that they may make ends meet, even with the unemployment dole, have an additional burden put upon them because of the poverty of their own parish. Further, there have been, recently, very many cuts made by the Ministry of Labour. In my own constituency during the past three months there have, been no fewer than 797 rejections from the Unemployment Exchange.

The hon. Member is entering into the administration of other Acts, quite apart from the one now before the House. That should be raised in Committee of Supply, and not on this Bill.

I was leading up to a point. I am not criticising the Ministry of Labour at this stage for what they have done, but I am pointing out that the effect of their action has been to throw 797 families additional upon the parish council, because, while the parish council before paid to these people a supplement over and above what they received from the Employment Exchange, they now have the total burden of the families put upon them. Naturally, those poor areas have fallen heavily into debt. Again, an additional burden is put upon them, their rates are no longer able to meet the annual charges, and consequently they fall into debt, which forms a capital liability. They then have to borrow money from the Government at 5 per cent., which again adds one-twentieth to their annual charges. So you have these areas, inhabited by poor people whose share of life is at any rate very small, who by the very fact of their circumstances should cause those who are better off financially to help them, called upon to bear this constantly enlarging burden entirely by themselves.

I submit that it is no argument to put forward, as the right hon. Gentleman has done, that the Clause under this Bill leaves open the avenue for the public authority to continue its work by direct labour. It can do that now, but I am sure that the right hon. Gentleman is not unaware of the composition of the town councils in Scotland. He is well aware, as everybody who knows Glasgow is aware, that again and again the question of direct labour has been raised in the town councils, and in the cities, that again and again experiments have been made, and that in every case the result of the experiment has been so challenging to those who support private enterprise against direct labour, that they have instantly mobilised their forces, and all the prejudices which exist against operations carried on by a public, authority, and have not only refused to extend the scope of direct labour but have even cancelled operations which have already been passed for the purpose of being carried out by direct labour. But we are dealing with public funds, and when public funds are handed over to a local authority for administration, we have a very careful and complete check upon the administration of those funds. We have public audits, and we have the accounts to the last penny open to the inspection and criticism of every individual citizen. But there is nobody who is to have the right to examine the books of any private employer who has made a tender for a job, and applies to the parish council for a subsidy on the wages.

Moreover this is an insult to the poor it is making them, with all their natural physical deterioration, and, I regret to say, also the mental deterioration, which naturally follows from years of unemployment for men who have not been trained to long hours of leisure not the recipients of that which is common to all citizens in their condition, but the recipients of a very special form of

charity. They are to apply for a job, they are to be examined as to what they have been doing, and how long they have not been working, and what is their physical condition, and the measure of their capacity to produce wealth is to be taken into consideration and made the basis of an application to the parish authorities to enable the parish authorities to subsidise the contractor in the doing of his job. Knowing, as I have done for so ninny years, the outlook upon public affairs of hon. and right hon. Gentlemen opposite, who know Scottish life and Scottish local authorities, and the outlook of Scottish people, I cannot believe that, if they had had the courage to face this dual problem of unemployment and poverty, which are not local in their origin or effect, and should not be local in their responsibilities, and if only they had had the courage to look upon this as a matter upon which an appeal should be made to the national conscience, the Government would not have brought forward in such a Bill as this a clause, which is so insulting, which is contrary to the traditions of the administration of this country for 80 years, and is absolutely opposed to that excellent rule of our public life, that the expenditure of public money should be under the constant and perpetual supervision of auditors, elected by public authorities to check that expenditure. So I regret very much that the Clause has been introduced, and I should not be doing my duty, either to my own constituents or to the city in which rests my heart, where I have given so many years of public service, if I allowed this Bill to go through without the most definite protest against that Clause.

Question put, "That the Bill be now read a Second time."

The House divided Ayes, 261; Noes, 101.

Division No. 19.]

AYES.

[7.55 p.m.

Acland-Troyte, Lieut.-Colonel

Barnston, Major Sir Harry

Brocklebank, C. E. R.

Albery, Irving James

Beamish, Captain T. P. H.

Brooke, Brigadier-General C. R. I.

Alexander, E. E. (Leyton)

Beckett, Sir Gervase (Leeds, N.)

Brown-Lindsay, Major H.

Alexander, Sir Win. (Glasgow, Cent'l)

Bellairs, Commander Carlyon W.

Brown, Maj. D. C. (N'th'l'd., Hexham)

Allen, J. Sandeman (L'pool, W. Derby)

Bentinck, Lord Henry Cavendish

Brown, Brig.-Gen. H.C. (Berks, Newby)

Amery, Rt. Hon. Leopold C. M. S.

Berry, Sir George

Buckingham, Sir H.

Applin, Colonel R. V. K.

Birchall, Major J. Dearman

Burgoyne, Lieut.-Colonel Sir Alan

Ashmead-Bartlett, E.

Blades, Sir George Rowland

Burman, J. B.

Atholl, Duchess of

Blundell, F. N.

Burton, Colonel H. W.

Atkinson, C.

Boothby, R. J. G.

Butler, Sir Geoffrey

Baird, Rt. Hon. Sir John Lawrence

Bourne, Captain Robert Croft

Cadogan, Major Hon. Edward

Balfour, George (Hampstead)

Boyd-Carpenter, Major A.

Campbell, E. T.

Balniel, Lord

Bridgeman, Rt. Hon. William Clive

Cautley, Sir Henry S.

Banks, Reginald Mitchell

Briscoe, Richard George

Cayzer, Sir C. (Chester, City)

Barclay-Harvey, C. M.

Brittain, Sir Harry

Cazalet, Captain Victor A.

Chapman, Sir S.

Henn, Sir Sydney H.

Philipson, Mabel

Charteris, Brigadier-General J.

Hennessy, Major J. R. G.

Pielou, D. P.

Christie, J. A.

Henniker-Hughan, Vice-Adm. Sir A.

Pllcher, G.

Churchman, Sir Arthur C.

Herbert, Dennis (Hertford, Watford)

Price, Major C. W. M.

Clarry, Reginald George

Herbert, S. (York, N. R., Scar. & Wh'by)

Radford, E. A.

Cochrane, Commander Hon. A. D.

Hilton, Cecil

Raine, W.

Colfox, Major Wm. Phillips

Hogg, Rt. Hon. Sir D. (St. Marylebone)

Ramsden, E.

Collins, Sir Godfrey (Greenock)

Holt, Capt. H. P.

Rawlinsor, Rt. Hon. John Fredk. Peel

Cooper, A. Duff

Homan, C. W. J.

Rawson, Alfred Cooper

Cope, Major William

Hope, Capt. A. O. J. (Warw'k, Nun.)

Rees, Sir Beddoe

Couper, J. B.

Hope, Sir Harry (Forfar)

Remer, J. R.

Courtauld, Major J. S.

Hopkins, J. W. W.

Rentoul, G. S.

Craig, Ernest (Chester, Crewe)

Hopkinson, A. (Lancaster, Mossley)

Rhys, Hon. C. A. J.

Craik, Rt. Hon. Sir Henry

Horlick, Lieut.-Colonel J. N.

Rice, Sir Frederick

Crook, C. W.

Horne, Rt. Hon. Sir Robert S.

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Crookshank, Col. C. de W. (Berwick)

Howard, Captain Hon. Donald

Roberts, E. H. G. (Flint)

Crookshank, Cpt. H. (Lindsey, Gainsbro)

Hudson, R. S. (Cumberl'nd, Whitch'n)

Ropner, Major L.

Cunliffe, Joseph Herbert

Hurst, Gerald B.

Ruggles-Brise, Major E.

Curzon, Captain Viscount

Hutchison, G. A. Clark (Midl'n & P'bl's)

Salmon, Major I.

Dalkeith, Earl of

Iliffe, Sir Edward M.

Samuel, A. M. (Surrey, Farnham)

Dalziel, Sir Davison

Inskip, Sir Thomas Walker H.

Sanders, Sir Robert A.

Davidson, J. (Hertf'd, Hemel Hempst'd)

Jackson, Lieut.-Colonel Hon. F. S.

Sanderson, Sir Frank

Davidson, Major-General Sir J. H.

James, Lieut.-Colonel Hon. Cuthbert

Savery, S. S.

Davies, A. V. (Lancaster, Royton)

Jones, Henry Haydn (Merioneth)

Shaw, R. G. (Yorks, W.R., Sowerby)

Davies, Maj. Geo. F. (Somerset, Yeovll)

Kennedy, A. R. (Preston)

Shaw, Capt. W. W. (Wilts, Westh'y)

Davies, Ellis (Denbigh, Denbigh)

Kidd, J. (Linlithgow)

Simms, Dr. John M. (Co. Down)

Davies, Sir Thomas (Cirencester)

Kindersley, Major Guy M.

Skelton, A. N.

Dawson, Sir Philip

King, Captain Henry Douglas

Slaney, Major P. Kenyon

Dean, Arthur Wellesley

Kinloch-Cooke, Sir Clement

Smith, R. W. (Aberd'n & Kinc'dine, C)

Drewe, C.

Knox, Sir Alfred

Smithers, Waldron

Eden, Captain Anthony

Lamb, J. Q.

Spender Clay, Colonel H.

Edmondson, Major A. J.

Lane-Fox, Lieut.-Col. George R.

Sprot, Sir Alexander

Edwards, John H. (Accrington)

Little, Dr. E. Graham

Stanley, Col. Hon. G. F. (Will'sden, E.)

Elliot, Captain Walter E.

Lloyd, Cyril E. (Dudley)

Stanley, Lord (Fylde)

Ellis, R. G.

Loder, J. de V.

Stanley, Hon. O. F. G. (Westm'eland)

England, Colonel A.

Looker, Herbert William

Steel, Major Samuel Strang

Erskine, Lord (Somerset, Weston-s.-M.)

Lucas-Tooth, Sir Hugh Vere

Stott, Lieut.-Colonel W. H.

Fairfax, Captain J. G.

Luce, Major-Gen. Sir Richard Harman

Strickland, Sir Gerald

Falle, Sir Bertram G.

Lynn, Sir Robert J.

Stuart, Crichton-, Lord C.

Finburgh, S.

MacAndrew, Charles Glen

Stuart, Hon. J. (Moray and Nairn)

Fleming, D. P.

Macdonald, Capt. P. D. (I. of W.)

Styles, Captain H. Walter

Ford, P. J.

McDonnell, Colonel Hon. Angus

Sugden, Sir Wilfrid

Forrest, W.

MacIntyre, Ian

Tanker, Major R. Inigo

Foster, Sir Harry S.

McLean, Major A.

Templeton, W. P.

Foxcroft, Captain C. T.

Macmillan, Captain H.

Thompson, Luke (Sunderland)

Fremantle, Lieut.-Colonel Francis E.

Macquisten, F. A.

Tinne, J. A.

Gadie, Lieut.-Col. Anthony

MacRobert, Alexander M.

Titchfield, Major the Marquess of

Ganzoni, Sir John

Makins, Brigadier-General E.

Tryon, Rt. Hon George Clement

Gates, Percy

Manningham-Buller, Sir Mervyn

Waddington, R.

Gilmour, Lt.-Col. Rt. Hon, Sir John

Margesson, Captain D.

Wallace, Captain D. E.

Glyn, Major R. G. C.

Marriott, Sir J. A. R.

Warner, Brigadier-General W. W.

Goff, Sir Park

Merriman, F. B.

Warrender, Sir Victor

Gower, Sir Robert

Meyer, Sir Frank

Waterhouse, Captain Charles

Grace, John

Mitchell, S. (Lanark, Lanark)

Watson, Rt. Hon. W. (Carlisle)

Grant, J. A.

Mitchell, W. Foot (Saffron Walden)

Watts, Dr. T.

Greene, W. P. Crawford

Mitchell, Sir W. Lane (Streatham)

Wells, S. R.

Grenfell, Edward C. (City of London)

Monsell, Eyres, Com. Rt. Hon. B. M.

Wheler, Major Granville C. H.

Gretton, Colonel John

Moore-Brabazon, Lieut.-Col. J. T. C.

White, Lieut.-Colonel G. Dalrympie

Grotrian, H. Brent

Morrison, H. (Wilts, Sallsbury)

Williams, Com. C. (Devon, Torquay)

Guinness, Rt. Hon. Walter E.

Morrison-Bell, Sir Arthur Clive

Williams, C. P. (Denbigh, Wrexham)

Gunston, Captain D. W.

Nall, Lieut.-Colonel Sir Joseph

Williams, Herbert G. (Reading)

Hacking, Captain Douglas H.

Neville, R. J.

Windsor-Clive, Lieut.-Colonel George

Hall, Lieut.-Col. Sir F. (Duiwich)

Newman, Sir R. H. S. D. L. (Exeter)

Winterton, Rt. Hon. Earl

Hall, Capt. W. D' A. (Brecon & Rad.)

Newton, Sir D. G. C. (Cambridge)

Wise, Sir Fredric

Hammersley, S. S.

Nicholson, William G. (Petersfield)

Womersley, W. J.

Hannon, Patrick Joseph

Nield, Rt. Hon. Sir Herbert

Wood, B. C. (Somerset, Bridgwater)

Henry Harland, A.

Nuttall, Ellis

Wood, E. (Chest'r, Stalyb'dge Hyde)

Harvey, Major S. E. (Devon, Totnes)

Oakley, T.

Worthington-Evans, Rt. Hon. Sir L.

Haslam, Henry C.

O'Connor, T. J. (Bedford, Luton)

Yerburgh, Major Robert D. T.

Hawke, John Anthony

Pease, William Edwin

Headlam, Lieut.-Colonel C. M.

Percy, Lord Eustace (Hastings)

TELLERS FOR THE AYES. ——

Henderson. Capt. R. R. (Oxf'd, Henley)

Peto, Basil E. (Devon, Barnstaple)

Colonel Gibbs and Mr. F. C. Thomson.

Heneage, Lieut.-Col. Arthur P.

Peto, G. (Somerset, Frome)

NOES.

Adamson, Rt. Hon. W. (Fife, West)

Barr, J,

Charleton, H. C.

Alexander, A. V. (Sheffield, Hillsbro')

Bowerman, Rt. Hon. Charles W.

Cluse, W. S.

Amman, Charles George

Broad, F. A.

Connolly, M.

Attlee, Clement Richard

Bromley, J.

Cove, W. G.

Baker, J. (Wolverhampton, Bilston)

Brown, James (Ayr and Bute)

Cowan, D. M. (Scottish Universities)

Barker, G. (Monmouth, Abertillery)

Buchanan, G.

Dalton, Hugh

Barnes, A.

Buxton, Rt. Hon. Noel

Davies, Evan (Ebbw Vale)

Davies, Rhys John (Westhoughton)

Livingstone, A. M.

Smith, Rennie (Penistone)

Day, Colonel Harry

Lowth, T.

Stamford, T. W.

Edwards, C. (Monmouth, Bedwellty)

Lunn, William

Stephen, Campbell

Gillett, George M.

MacDonald, Rt. Hon. J. R. (Aberavon)

Stewart, J. (St. Rollox)

Graham, D. M. (Lanark, Hamilton)

Mackinder, W.

Sutton, J. E.

Graham, Rt. Hon. Wm. (Edin., Cent.)

MacLaren, Andrew

Taylor, R. A.

Greenall, T.

Maclean, Neil (Glasgow, Govan)

Thomas, Rt. Hon. James H. (Derby)

Greenwood, A. (Nelson and Colne)

Maxton, James

Thomson, Trevelyan (Middlesbro, W.)

Grenfell, D. R. (Glamorgan)

Mitchell, E. Rosslyn (Paisley)

Thorne, W. (West Ham, Plaistow)

Griffiths, T. (Monmouth, Pontypool)

Montague, Frederick

Thurtle, E.

Groves, T.

Morris, R. H.

Tinker, John Joseph

Grundy, T. W.

Morrison, R. C. (Tottenham, N.)

Viant, S. P.

Guest, J. (York, Hemsworth)

Palin, John Henry

Walihead, Richard C.

Hall, G. H. (Merthyr Tydvll)

Paling, W.

Watson, W. M (Dunfermline)

Hardie, George D.

Pethick-Lawrence, F. W.

Wedgwood, Rt. Hon. Josiah

Hastings, Sir Patrick

Ponsonby, Arthur

Welsh, J. C.

Hayday, Arthur

Potts, John S.

Westwood, J.

Hayes, John Henry

Richardson, R. (Houghton-le-Spring)

Wignall, James

Henderson, T. (Glasgow)

Riley, Ben

Wilkinson, Ellen C.

Hirst, G. H.

Robinson, W. C. (Yorks, W.R., Elland)

Williams, T. (York, Don Valley)

Jenkins, W. (Glamorgan, Neath)

Saklatvala, Shapurji

Wilson, C. H. (Sheffield, Attercliffe)

John, William (Rhondda, West)

Scrymgeour, E.

Windsor, Walter

Johnston, Thomas (Dundee)

Scurr, John

Wright, W.

Jones, T. I. Mardy (Pontypridd)

Sexton, James

Young, Robert (Lancaster, Newton)

Kennedy, T.

Shiels, Dr. Drummond

Kirkwood, D.

Slesser, Sir Henry H.

TELLERS FOR THE NOES. ——

Lansbury, George

Smillie, Robert

Mr. John Robertson and Mr. Warne.

Lee, F.

Smith, H. B. Lees (Keighley)

Bill accordingly read a Second time, and committed to a Standing Committee.

Public Health (Scotland) Amendment Bill

Order for Second Beading read.

I beg to move, "That the Bill be now read a Second time."

This Bill, as my friends from Scotland are aware, is exactly the same Measure as that which we discussed last year. That Bill was passed by the late Government and got a Second Reading in another place. This Bill is to empower the public health local authorities in Scotland to provide insulin to those persons suffering from diabetes who require assistance in obtaining the treatment. This is a matter of some urgency, because since the early part of 1924 certain local authorities have been, in fact, providing insulin, and this Fill is for the purpose of regularising their position. The Bill is confined to this one particular disease. I hope that the House will give the Measure a Second Reading now, in order that it may go to the Standing Committee on Scottish Bills.

I am very sorry that I cannot comply with the re quest of the Secretary for Scotland. He says that this is practically the same Bill as that which was before the House last year. That is true to a point, but this Bill is not entirely the same as that of last year. The Bill of last year provided that where the Scottish Board of Health considered that any other disease might require special treatment, then if an Order were laid on the Table and that Order passed both Houses, the Board of Health would be entitled, without a further Act, to make provision for the treatment of those other diseases. This Bill eliminates entirely that which we consider to be a very necessary thing. It makes provision only for the disease of diabetes and the supply of insulin. At the time last year's Bill was originally proposed, doses of insulin cost as much as 30s. per person per week. Now, owing to later discoveries, the product is cheapened, and doses can be supplied for a very few shillings per week. Consequently the necessity for this Bill in relation to the one disease of diabetes is not quite as great as it was last year. On this side of the House we think that provision should be made for the treatment of other diseases in the way I have suggested, and that the time of the House should not be taken up on any future occasion in passing another Measure. Suppose that some discovery is made for effective treatment of cancer. Deaths that are preventable might take place owing to our not having adopted the procedure of having an Order laid on the Table and passed by both Houses in the way I have suggested. We would be obliged to pass another Bill in order to meet such a situation.

I ask the Secretary for Scotland to extend this Bill until it is similar to that of last year. I think it is very creditable to the Government that they are anxious that effect should be given to the promise made last year. Everyone who knows what the treatment of diabetes by insulin means will realise that this is a scheme which ought to be hastened. But there are many diseases of a somewhat similar nature, the cure of which we know nothing about at the present moment. The other day a doctor said hat we did not know anything about, simple colds. Treatment for a cold to the ordinary person means only the expenditure of a shilling or a visit to a doctor. But there are thousands of people who are unable to make provision for even the simplest medicine at borne. They cannot go to the parish council, because they are not persons who come under the parish council law, and they are not insured persons. I am certain that the procedure I have outlined would lead to the simplification of local government, would prevent agitation, would save the waste of much time, and would prevent many deaths.

If the Secretary for Scotland would agree to the suggestion which has been made I would allow him time to reply before 8.15. We have to impress upon the House that when we come to deal with those who are in poverty and are suffering, we must see that there is some sense of share and share alike when it is a question of the purchase of a cure. Why should people because they are in poverty—poverty which very often is not their own fault—not he able to obtain the means of curing disease? The Secretary for Scotland says that, whatever provision there is for the treatment of diabetes, a fair share will go to those who are unable to purchase treatment. If we are to have a reasonable measure for dealing fairly with people who are suffering, that measure should not have a financial basis. We must see to it that, no matter how small the quantity of what is needed for a cure, the hospitals which are under our control shall he in a position to ensure that even the very poor are not denied their share of treatment——

May I appeal to hon. Members opposite? Really, this Bill is very urgent, and it is a very de- sirable Measure, as all who are interested in the problem know. As to the giving of insulin as freely as is necessary to those who really require it, I can tell the last speaker that I will do every thing I can to ensure that that is done.

If we give the Bill a Second Reading now, will there be any opportunity later of making it similar to the Bill of last year?

Will the Secretary for Scotland not give us an assurance that if the Chairman of the Committee is agreeable, the Government will be willing to accept a Bill similar to that of last year?

That raises the whole issue of last year. If we had an opportunity to deal with the Bill in Committee, we could give the right hen. Gentleman a Second Reading now.

If the right hon. Gentleman and his friends prefer to lose this Bill, it is for them to decide.

We are not going to lose the Bill. That is a most unfair thing for the right hon. Gentleman to say—that Minister can come to this House at two minutes past eight with a Bill, and then, because the House will not give it him, to say that the Bill will he lost. If those are his tactics the right hon. Gentleman knows how well he followed them last year himself. He has no right to say that. I had every intention of allowing the Bill to go through. I protest against the Secretary for Scotland lecturing Members in this way. We have given him fair play in the past, and if ho tries that sort of thing he will find that he is in the wrong house altogether——

It being a Quarter-past of the Clock, and there being Private Business set down, by direction of the Chairman of Ways and Means under Standing Order To. 8, further Proceeding was postponed without Question put .

Private Business

COUNTY OF LONDON ELECTRIC SUPPLY COMPANY BILL [Lords]. (By Order.)

Order for Second Reading read.

Motion made, and Question proposed, "That the Bill be now read a Second time."

I beg to move to leave out the word "now," and at the end of the Question to add the words "upon this day six months."

This Bill, although differing in some respects from the two Bills which we considered last week, is, nevertheless, one of a group of four Bills aimed more or less at forestalling a national scheme of electricity supply. The schemes of electricity supply outlined by the Minister and indicated by previous Acts of Parliament had for their object the establishment of joint electricity authorities for certain areas. The private companies in and around London did all they could to prevent the establishment of those joint electricity authorities. Their policy has been, by delay and by the promotion of these Bills, to attempt to obtain a privileged position in anticipation of that development. Before proceeding to the case against this particular company think it relevant to consider the importance of electricity to the community as a whole. The necessity for developing electric power is generally accepted. Not only is it of immense importance to the business community but it is equally advantageous as regards domestic comfort. No one can look upon our industrial towns without welcoming any invention or any new power which is going to introduce cleanliness and comfort into the domestic life of the people. Not only will the business community find distinct economic advantages from the development of electrical power, but it will also have an important bearing on social improvements in the future.

Therefore, I submit that electricity should not be considered from the standpoint of business exploitation. It is far too important to be placed in that category. I place electrical power development in the same category of services as education, sanitation, the Post Office and the defence forces. No one would suggest to the House that the Post Office should be handed over to private companies. Why? Because we all recognise, apart from our economic beliefs, that a postal service under public control is just as beneficial to private enterprise as it is welcome to those who believe in common ownership. No one would suggest that education should be a private monopoly, because education is vital to the commercial progress of this country, whether it is under a private ownership or a public ownership system. When we consider the rapid growth of a new power like electricity in social, economic, and political importance, it becomes apparent that it is essentially a service for public rather than private control. Whatever may be the intentions of private companies, they must organise their policy, first and foremost with regard to how far it will serve the interests of their shareholders, rather than to how far it will benefit the community.

After 30 or 40 years of electrical power development in this country we find the electricity supply in a more or less chaotic condition merely because of the policy of drift which Parliament has allowed to continue. There is a conflict between local authorities and private companies, and although the Minister indicated the desire and intention of the Government to grapple with this question on a national scale, yet as far as I can see the more the promotion of legislation of this description is allowed to go on the further will that scheme of national development recede. The present Bill will not improve the position. It will not make for a settlement of the conflict between municipal and private enterprise, but will retard such a settlement. Let us look to the obvious intention of Parliament in previous legislation. I do not think it can he controverted that in the Act of 1888 Parliament clearly had in mind the prospect that, after a certain period, electrical development should revert more or less to public control. The experience which we have had since then confirms that view. Therefore we can see the reason which animates the promotion of legislation of this sort.

The intention of Parliament can further be discovered in the 1903 Act when it transferred rights spread over a number of local authorities to the London County Council. Obviously Parliament saw that it would not promote municipal or public control of electricity in London and the home counties if it allowed those rights to be spread over a number of authorities and, quite rightly, it chose the larger public authority which would be in the better position to assume public ownership. Unfortunately the London County Council has partially sold, not only its own rights, but also the rights of many other local authorities in and around London who were affected by the 1908 Act. The present Bill proposes to give special privileges and powers to this company to exploit the county of Essex. I think we are entitled to ask Members of Parliament to-day why they are elected to Parliament. I do not think anyone, wherever he may sit, would argue that he has been elected to Parliament to promote private as against public interests. Parliament is a representative institution, and is supposed to safeguard the rights of the community of Great Britain, and when we find local authorities in the county of Essex unanimously—[Hon. MEMBERS: "No!"]—I do not know of any local authority in Essex that is enthusiastic for this Bill.

The county council have been placated because in this sense they have direct interest and no direct investment of their funds in electric power or distributing stations, but when you come to the urban and town councils in Essex, who have actually invested their ratepayers money in their own electrical undertakings, you find all of them protesting against this Bill

Except here and there one or more local authorities that have been removed outside the operation of the Bill, or have been placated in some way or another. As a matter of fact, if the same privileges were extended to Colchester and Southend and other corporations as have been extended to East Ham and West Ham, they would withdraw their opposition to the Bill. I ask the Minister if it is the duty of the Government or of Members opposite deliberately to back a power company, or a distributing company which desires to become a power company, as against the ex- pressed opinion, and the forcibly expressed opinion, of the local authorities in the County of Essex. What makes my point even more strong is the fact that these local authorities who are opposing this Bill are of the same political complexion as hon. Members opposite. Obviously, Colchester, Southend, Chelmsford, and bodies of that description are not opposing this Bill for the same reasons as we may urge from these benches, and, therefore, if Conservative councils in Essex are opposing these Bills, I think we have added strength to our claim that it must be for purely business and community well-being rather than from the point of view of expressing any particular isms.

Now I want to describe some of the points of objection to this Bill. In the first place, it is enabling a private company to peg out its claims to certain areas, over which at present it does not operate, without accepting any corresponding responsibilities. The next point is that, as far as I can see, the Bill will enable the company to choose the most profitable customers in this new area and neglect the smaller and less profitable users, and I think that is a principle that Parliament cannot possibly support. While we may all agree with the necessity of promoting electrical development to increase the efficiency of business, no one in this House should allow that development to be exploited in the direction of catering for large users and neglecting the smaller users, because it is just as important for the well-being of this country that electricity should be encouraged in the household and for domestic purposes as for business purposes. The next point is this, that it makes a distributing company a power company. There is a number of distributing concerns in the County of Essex, mainly municipal, and why should a private company be selected to become a power company and thus have conferred upon it a privileged position, because power companies do occupy a privileged position with regard to electricity legislation?

The fourth point is that the effect of this Bill will be to create a monopoly power in the county of Essex, and although Parliament aimed originally, in previous Acts, at creating a number of joint electricity authorities throughout the country, this Bill will have the effect of making a joint electricity authority for the county of Essex inoperative. I think we are entitled to ask why a national policy supposed to be essential throughout the country generally should be departed from as far as Essex is concerned. The next point is this, that whereas in the London Electricity Supply (No. 2) Bill there was a Clause limiting profits—I agree that it made provision for fairly generous profits, nevertheless it did establish in principle that it was desirable to have a limitation of profits when Parliament conferred special powers and privileges on private companies—in this Bill, although they obtain practically all the advantages given in the other Bill which we discussed last week, nevertheless there are no limitations of profit. Therefore, it means that the more they can exploit the county of Essex, the greater their profits will become.

Another question that I think we are legitimately entitled to put to the Minister is this; Under Section 4 of the Electric Lighting Act, 1909, and Section 19 of the Electricity Supply Act, 1919, this company and similar companies could obtain a good many of the new powers that they require by promoting Special Orders. Why have they not adopted the procedure of a Special Order, if they have a good case, with regard to some of the developments which they appear to desire to carry out under this Bill? When we consider the obligations which a private company has to accept under a Special Order, and when we realise how they get out of those obligations by promoting a Bill, I think the reason will immediately become apparent to the House. Under this Bill they remove the necessity for obtaining the consent of a local authority to supply in their area, but under a Special Order they would have to obtain the consent of the local authority. It is true that the Minister can set that consent aside, although he has to have very good reasons for doing it, but under a Bill with new powers this company can override a local authority and can develop without obtaining their consent.

Then, again, under Special Orders they have to specify the streets in which they will lay their cables within a period of two years. Under this Bill they are relieved of that obligation. Why should they wish to be relieved of that obligation? Obviously—it comes back to one of my first points—they are pegging-out their claims to large new areas, and probably have no intention at all of developing those areas, but are simply preventing other authorities—municipal—from developing those areas, and will keep these powers until it suits their particular interests to expand, and until they can obtain a very reasonable, and, possibly, a very generous profit by so doing. Then, again, by promoting this Bill, they remove the purchase rights that local authorities had in previous legislation, so they will have their powers in perpetuity, instead of local authorities having the right to purchase within certain periods.

In view of what I have stated, it is not surprising that this Bill has caused considerable alarm, not only to the local authorities in Essex, but to local authorities throughout the country. I know it is not always desirable to read lengthy quotations to the House, but I wish to trespass on the indulgence of the House by reading certain statements from the Incorporated Municipal Electrical Association. I do so because a body of that sort is, obviously, much more authoritative than an individual like myself. It was in the general meeting at Chester, in June, 1924, that they passed this resolution, which is indicative of the general alarm prevailing in municipal circles as to this development, of which this County of London Bill is but a particular and a glaring instance. The resolution is as follows: declared in favour of the Burnley Corporation scheme.

May I ask whether the hon. Gentleman is in order in roaming at large over the whole electric schemes of this country?

I think the hon. Member has been quite in order up to now.

My only desire is to bring out the point that the principle involved in this Bill, so far as the county of Essex is concerned, is not isolated, that it is a principle that applies, and is applying more and more, throughout the country. It is not only the local authorities in the county of Essex that are opposed to this Bill, but it is being opposed by local authorities throughout the country, because of the principle that is involved, and, in view of the instances have quoted, one cannot wonder at the widespread alarm on the part of local authorities. I will revert to the case I was giving. A Commission was appointed, and the Commission declared in favour of the Burnley scheme. Despite that decision, the Electricity Commissioners gave power to the Lancashire Electric Power Company, and approved of their scheme. The next point I want to deal with is the evidence submitted to the House of Lords by the Colchester representative. During the consideration of the evidence Mr. Beveridge, who was representing the Colchester Corporation and the Urban District Council of Clacton, made this statement:

"I asked yesterday a question about the competition (page 66 of the Notes). I put to him"—

that is the representative of the company—

"this question: 'The position is this, that if you get powers to come into Colchester—and it equally applies to Clacton, of course—and distribute there, there will be a duplication of mains; there will he two sets for supply in the some area?' The answer was: I am quite sure that Sir Henry Renwick's company will not seek powers to compete in Colchester if Colchester are prepared to take a bulk supply from them.'"

On a point of Order. Is the hon. Gentleman in order in reading from the Reports of another place? If so, it will probably be the case that Members on this side of the House will also quote verbatim from Reports of another place?

Are the Reports from which the hon. Gentleman is reading from the Debates of this Session?

We shall certainly on this side of the House be quite willing to listen to any evidence that eau be submitted from the other side in reply to that submitted from this side. Our case is quite a good one and sound, and it is up to the hon. Member opposite to quote other evidence if he is in a position to do so. Before I come to my final point, dealing with the Colchester evidence which I was submitting to the House when I was again interrupted, may I say it is quite apparent and quite plain from that statement that the company desires to have the power of threatening local authorities with two alternatives. If the local authority is not desirous of accepting a bulk supply from the company—that is the company in the privileged position that it undoubtedly is—the company, operating over a wide area is able to choose a particular district, cut prices and adopt competitive methods. That is quite unfair to another body which is restricted in its operations.

Obviously, if 80 per cent. of your supply is outside, say, the Colchester area and you can charge whatever rates you like—for it is quite possible in a competitive sense to take a small proportion of your supply into an area like Colchester, and cut the price, because you are carrying that charge for a wider distributing area—you compel the local authorities under unfair competitive conditions to adopt one of two courses: either to accept a bulk supply from the company, whereas they desire to accept it from the joint electricity authority—for they want a joint electricity authority established—or, if they do not accept that bulk supply from the company then to lay down a main and become a competitive factor. Competition on these lines undoubtedly means that the company would un- doubtedly go to the larger consumers, to the more profitable consumers, with special rates, and leave the local authorities the small user, and the more expensive kind of supply. Then, after a period of that sort, the local authority's results would not be so good as those of the private company, and hostile critics would then point to the result of the municipal electricity enterprise, and say, "There is the failure of public enterprise, and here is the success of private enterprise!"

We on this side of the House claim that the local authorities in the County of Essex are entitled to protection against that kind of treatment. Let me take Southend. The borough authority of Southend have invested over half a million of public money in their electricity undertaking. Why should a power company, with practically no local responsibility, no local payments for the expenses of the Borough of Southend, suddenly butt in under these privileged conditions and begin undermining the investment of that public money? Further, anyone who is conversant with the development bf Thames-side industry will readily admit the force of the contention of the Southend Corporation that commercial development is spreading more and more down the River Thames towards its mouth. In the course of a few years it may be necessary—even if it is argued that a joint electricity authority is not required for the moment—it certainly will he necessary in the near future that there should be a joint electricity authority for the county of Essex This Bill forestalls that development. This Bill prevents the establishment of a such a joint authority. It puts a private company into a privileged position. I appeal to the Minister, I appeal to hon. Members on the other side, I appeal to the sense of fairness of this House, not to undermine the rights of local authorities who nee not animated, in this instance, with any desire for political propaganda, along the Tines of public enterprise versus private enterprise, but who are animated solely and entirely from the point of view of the interests of their local ratepayers, and from the point of view of an essential and fundamental service for the business community and their own residents. I appeal, I say, to Parliament to reject this Bill.

I have great pleasure in seconding the Amendment.

I anticipate speaking in some detail on this Bill. Before, however, I get to that I want to say how amused I was to-day to receive a circular issued by the promoters of the County of London Electricity Supply Company Bill, which

Firstly, let me say so far as that quiet borough that I have the honour to represent a part of, West Ham, is concerned, our town clerk submitted these Bills to the legal and general committees weeks ago. We impartially analysed this Bill and the Corporation itself unanimously came to the opinion that the four Members of Parliament, three Labour and one Conservative, should be asked to be in attendance here this evening on behalf of the Corporation of West Ham and vote against the Bill.

My two real objections to this Bill are, firstly, its effect upon municipal undertakings in Essex generally, as pointed out by the Mover of its rejection; and, secondly, the obvious effect that it will. This Bill seeks to extend the Electricity Act of 1922, and will virtually give a monopoly to the power company. The Act of 1922, Section 16, dealing with it in provides speaks of being only a County of Essex Bill, includes Colchester and Southend, and I am going to prove before I sit down that it will affect both West Ham and East Ham. Colchester and Southend at present undertake the supply of electricity, and therefore the promotion of this Bill is tantamount to seeking Parliamentary powers to engage in competition with the present undertakings in Southend and Colchester. The Bill virtually gives this power company the right legally to compete with undertakings that are owned by those localities and are only prosperous because of the money belonging to the common people of the locality which has been invested in them.

Clause 11 of the Bill we are discussing shows that the Bill confers on the power company, not only the right to supply bulk, not only the right to serve the undertakings with their bulk supply of electricity, but the right to supply customers of the present undertakings in Colchester and Southend and, as I am going to prove, in West Ham and East Ham. Clause 11 reads:

I think the House will follow my point that to give Parliamentary powers to this company to supply electricity in bulk is a vital attack upon the presently-existing electricity undertakings. It would also give this company the power to undercut Southend, Colchester, West Han and East Ham, inasmuch as this power company would have the right to supply the customers of the existing electricity services. So far as Wrest Ham is concerned, it is up to now excluded from the precise and particular provisions that I have enumerated; but although West Ham is not part of the County of Essex for electricity purposes, it is geographically part of the County of Essex, and this Bill does not contain any definition of "the County of Essex." Clause 6 simply says: over £1,000,000 of the ratepayers' money in building an electricity undertaking which is one of the largest and one of the most efficient undertakings in London and the Home Counties. Within the county borough of West Ham we have 14 railway stations, and a part of the trunk line of the North Eastern Railway and the London and Midland Scottish Railway come within our borders. The Royal Albert Docks, the King George the Fifth Dock, and part of the River Lea are served by us with bulk electricity. If under this Bill power is to be given to serve those who run tramways, light rail, ways, or canal dock navigation——

The PARLIAMENTARY SECRETARY to the MINISTRY of TRANSPORT
(Lieut.-Colonel Moore-Brabazon)

I would like to call the hon. Member s attention to the First Schedule. These matters come within the joint authority of the Home Counties.

We are giving powers to undertake certain things, and surely this comes within our purview, when we are going to deal with things which are prospective. Clause 23 does give the right to this power company to serve bulk electricity to the users, railways, tramways, and canal, dock, navigation or waterworks undertakings, partly within and partly without that area. This may be confusing in the Bill, but I am not intentionally guilty of any offence when I point out that the lack of clarity in the Bill we are discussing causes the aldermen and councillors of our borough, including myself, to come forward and issue this warning. It is a warning on behalf of the citizens whose money has been used in establishing an undertaking of which we are honestly proud, and we want Parliament to use its influence in order that we may feel sure that our undertaking will receive the fullest measure of Parliamentary protection.

Hon. Members will not feel amazed if the Minister points out that my point is just off the line, because I am conscious that the County Borough of West Ham was so concerned with regard to the point I am putting here that they presented a petition against this Bill or its inception, and pointed out that the bone of their contention was that West Ham having erected a large generating station costing £1,000,000, having these 14 railway stations and docks and canals wanted to feel that the Members of this House would be concerned as to the future possibilities of tins power company entering into competition and attacking their undertaking. No one suggests that we should apologise for putting forward this particular point of view. I put it most respectfully that we are concerned that this is an attempt to give greater power and influence to private undertakings in this country. There have been many Acts passed conferring benefits and powers on private undertakings which have been used in a way detrimental and prejudicial to the existing municipal powers and undertakings concerned. We supply all the current necessary for the West Ham tramway undertakings, and we should be concerned if this company had the right to come and undercut, or had the power to supply electricity in bulk within the county borough of West Ham and East Ham, where public enterprise and the time of our officers have given us services which tend to the general development of this country.

For these reasons we are concerned and suspicious that the extension and development of powers to private electricity undertakings will and must inevitably in the end lead to the undermining of municipal undertakings, and give greater power by competition against those municipal undertakings, and it is from that point of view, having put forward the details of the Bill we are now discussing, and having proved that the, powers contained within this Bill confer upon this particular private power undertaking not only the right but the possibility to invade the municipal corporation electricity supply of West Ham, that I have pleasure in standing here on behalf of the West Ham Corporation, in the name of equity and fair play, and ask that the House shall reject the Second Reading of this Bill because it does not give fair play to the municipal undertakings built at the expense of the ratepayers, who are paying interest on the money borrowed and are supplying cheap electricity at 1¼d. per unit for power and 5d. for lighting purposes. I think our supply hears comparison with any private undertaking in this country, and we feel that we are jealous of our interests. We want the House of Commons to protect our interests and we make no apology for asking hon. Members to deal with this question in a serious way, and not facetiously, and declare that the municipal authorities of this country are worthy of consideration.

It is my painful duty to oppose this Bill, and I do so from a slightly different position from hon. Gentlemen opposite. I only wish that Southend were included in the Schedule with West Ham and East Ham. It would save me a certain amount of trouble if it were, but I am opposing this Bill chiefly because I believe it is a bad Bill. I believe it is a Bill that is trying to alter the general conception of the regulation of electricity supply as it has been laid down by various Parliaments in recent years, and that is being done by a private Bill. I think it is a very dangerous thing to alter that kind of custom without proper and full consideration. It may be that, under the powers and regulations by which the Electricity Commissioners and the Ministry of Transport are allowing the development of electricity to be carried on, a two years' notice does not give the companies long enough to get their mains in or give them adequate protection. I want to See electricity supplied—I do not mind by whom—and I want to see it supplied cheaply and used; and it is from that point of view that I think this Bill may be a hindrance at some future time. It has no time limit that I can see. In the ordinary way, there would be a definite time of, say, two years after powers had been sought from and given by this House. That might not be long enough, but to give unlimited power, to give a cheque that has no date on it, is not a proper process. You have always to carry that liability at your bank, and you do not know when it may be called on.

This Bill asks for powers for Essex for all time. In my opinion that is bad, and, unless some assurance is given on that point, I shall go into the Division Lobby against the Bill. Besides that, the Bill contains no definition of profit. I think it is a very difficult thing, and, perhaps, an illusory thing, but I would like to see it there all the same, and I would like to see some definition of the price at which the undertakers would supply their electricity. Then there seems to me to be the definite difficulty—I do not know how it can be overcome—that this Bill allows this undertaking to supply electricity to the big consumers, which means the profitable consumers. The result is that small consumers will have to pay more for their electricity. It may be said, and I think it is quite open to argument, that that is better for the community as a whole; but it is very difficult to persuade the small consumer who has to give his vote, that it is better for him to pay more for his light in order that a big factory may be worked near by, and one has to bear that in mind. I should like to think that some compromise could be effected along these lines, because, after all, the big bulk of electricity is used for lighting, and it is very useful and a great help in the home. If, however, we can encourage other forms of use, it is a great pity to prevent it. At the same time, this Bill will hinder what has been laid down as the policy of this House for some time; it will hinder the setting up of a joint electricity authority for Essex. It will make it almost unnecessary—but not quite unnecessary, because it does not, and cannot, cover the whole area. There are at present people producing electricity who will be outside this company, and, therefore, there will be no co-ordination unless there is a joint electricity authority.

It appears to me, however, that the real trouble of this Bill is that it is giving a cheque without a date. A longer period may be necessary than hon. Members opposite would like to give, in order that the undertakers may establish their undertaking. That, I think, is true, but I do not think it is a good thing to set up a right to a monopoly—some people would say that it is not an absolute monopoly, but it is very nearly a monopoly—a monopoly that lasts for all time. I personally have a house in the neighbourhood of Woking, and there we have very unfortunate kind of electricity supply. It was, no doubt, an admirable supply when it was put in, but we only wish we could scrap it now. How do we know that the very work we are doing now in connection with this Bill will not need to be scrapped in 20 or 30 years? Then it will be possible for the successors of the present directors to claim at some future date in this House that they have an unlimited monopoly in point of time, that certain rights have been conferred upon them by this House which will never expire, and that, therefore, they must be bought out for the remainder of eternity. I think that that is a wrong policy, and it is one which I hope we shall say here this evening that we are not going to endorse, so that we may not have to face this proposition in the future. I earnestly beg the House to consider very carefully the alteration by a Private Bill of the policy that has been laid down by previous Parliaments, and, therefore, I shall ask the House to divide unless we have some definite assurance on the lines that I have suggested.

I apologise for again, within a week, thrusting myself upon the House to talk about electricity. I find myself in rather a Gilbertian position, because last week I pleaded for a public authority owning all the generating stations of London, by the establishment of a London joint authority. Hon. Members opposite went into the Lobby against me. To-night—[HON. MEMBERS: "Not against that!"] That was the basic reason: [HON. MEMBERS: "No!"] If that Bill had been defeated, it would have delayed for a long time the setting up of a joint authority. To-night I have to take the other side, that of private enterprise, and I have found tonight, when pleading this cause on my side of the House, that several of my friends take an opposite view. Although the Title of this Bill is the County of London Electric Supply Company Bill. I think it is right that it should he made perfectly clear that really what we are concerned about to-night is the question of Essex, and not of London. Although there was in the original Bill certain areas in London, those are dealt with perfectly plainly in the earlier part of the Bill and they are taken over by the London Joint Electricity Authority. We need not worry about those areas. We want to deal with the outside areas.

I think I ought to draw the attention of the House to a rather curious position with regard to this matter. The generating station of this particular company passes into the ownership of the London Joint Authority in 1971, so that at that particular date, if this particular Bill is passed, the Joint Authority of London will provide the generating plant for power for the county of Essex. If that is so, one cannot make a great case about private enterprise, because at that date the London Joint Authority will supply two authorities. The discussion has ranged, so far, about the scandal of giving to private enterprise the electrical development of this district. I still stand half-way between being in favour of private enterprise and being in favour of public enterprise. I think licit week I gave as much compliment as I could to Glasgow and Manchester for the way that they run their stations. From the point of view of private enterprise, do not let anybody think that private enterprise has anything to be ashamed of. Again quoting the North Eastern Company, they are supplying to-day current cheaper than any other undertaking in this country.

The average is just over ½d. for light and power. I am taking into consideration these two important matters. One is the load factor adjusted against Manchester, and the other the price of coal. When one quotes ordinary prices for electricity the whole thing is very deceitful. If I am asked to supply electricity on a 100 per cent. load factor such as is wanted in the chemical industry, I would be prepared to supply it at under ¼d. per unit, but if I am to supply electric current, say for electric light, or for a short time in the day, then it becomes an expensive thing, costing about 5d., because the plant is idle, and not earning money the rest of the day. When you begin to supply electric current only for peak load, it becomes a very expensive thing to do. I want to answer the hon. Member for East Ham (Mr. Barnes) with regard to the position of the Commissioners in relation to what he said about them always coming down on the side of the power companies.

I want to quote the cases of Nottingham, Derby, and Burton-on-Trent, where extension of municipal undertakings was recommended by the Commissioners in preference to private enterprise. It may be good to give it to private enterprise or it may be bad. One thing is bad and that is to give it to private enterprise with the option of taking over. Nothing has been worse for the electrical development of this country than this constant threat of being taken over. A lot of undertakings are really not going ahead in the way they should because they do not know whether they are going to be taken over or not. There you have the cause which really puts development into a state of stagnation. I want to deal with this particular district which is outside the populous area of London. The only generating authorities of any size are Colchester, Southend and Chelmsford. When hon. Members say that the establishment of the power companies is going to prejudice the setting up of a Joint Electricity Authority, one must take info consideration what is the object of setting up a Joint Electricity Authority. The idea was this: that when in a congested area there were many undertakings and where co-ordination was essential to efficiency, it would be advisable to set up that authority. It is regrettable that compulsory powers were riot given for setting up that authority. In this particular district no such conditions exist. The generating stations are very far apart, and I give it as the opinion of the Commissioners that not only did they never envisage the idea of an authority being set up in a few years, but they had never thought of it at all. From that point of view objections fall to the ground. The duty of a municipal authority is to provide for the needs of its particular town. That is the work they have to do and when they start an electrical undertaking that is the scope really of their views. There is no machinery in the State which gives to a public authority the possibility of taking in a district. You get to-day this position: that you cannot expect towns like Colchester to lend from their rates to develop territory with which they have nothing to do. You have a certain gap in organisation from the point of view of developing these big areas which it is practically nobody's business to do. Here steps in the private company. They come and say, "May we develop this particular area between the towns which are already provided with electricity undertakings?" It is very difficult to say "Yes" or "No." You have to weigh up whether they are a serious company, whether they are prepared to do the work, and give electricity at the proper price. The alternative is that the area will get no electricity at all.

Is the Parliamentary Secretary aware that the Commissioners defined the area including almost the whole of the Home Counties as the area under the Act?

The area of London and the Home Counties was defined by the local authorities, and certainly they did not want to finance an expanse of territory purely urban and which had nothing to do with London. It was obvious that that area would be left out of the ambit of the joint electricity authority.

The big scheme fell down of its own weight. A joint electricity authority is set up to deal with a congested area of supply. It is no use setting up a joint electricity authority to deal with urban districts. That is not what it is set up for. What does the Bill provide? First of all, it does not butt in to those local authorities which generate to-day. There seems to be some misgiving in the mind of the hon. Members for Colchester, Southend, and, I think, Chelmsford. The only condition on which the company can go into those areas is if the authorities in those districts are unwilling or unable to give an adequate supply at all. If they cannot give a supply, the power company can offer a supply. That is the only possibility of their hutting up against the existing local authorities. [An HON. MEMBER: "They can under-cut, can they not?] No, they cannot under-cut, because they must quote the same price to all undertakers throughout the area. If they cut, they have to cut throughout the whole county. They cannot make one price for one locality and. another for another.

Railway companies are always very sticky about taking power from a power company. We hope one day to get railway companies to take power from the nearest authority, because it is a useful load and it will reduce the price wherever it is taken. Secondly, what are the statutory obligations which a power company has to fulfil? They have to provide power to any authority which demands it. Of course, you may ask, as my Noble Friend asked, what is the time limit? It is obvious that, throughout the whole of Essex, if everyone asked for electricity to-morrow, one could not put a definite time limit to a company to put the lines down, but the words "a reasonable time" are put into the Bill. In case those particular areas which are non-profitable are neglected, Clause 16 says that a programme has to be submitted to the Commissioners for two years, in which they will see that a certain development takes place, and they can impose that development upon the companies.

Clause 16 is headed "Limitation of Powers of Joint Electricity Authorities in areas of power companies."

Is not that the precise point I made, that there is power under Clause 16 for the power companies to undercut the local electricity authorities?

I thought I explained that. The only time that they can come in is if the local authority is unable or unwilling to give a particular supply.

Yes, it is in the Bill. My hon. Friend the Member for Harwich (Sir F. Rice) asked, "Can a line which has once been laid be tapped for the benefit of the district through which it runs?" Clause 11 states that anyone can tap that line.

Yes, within 50 yards. It is inconceivable that anyone whose business it is to sell electric current would not be delighted to let anyone tap his line, for after all, his business is to supply power, and the more he supplies the better it is for him. Any local authority throughout the whole of Essex is able, by Special Order given by the Commissioners, to become a distributor of electricity, and this is a point I want to emphasise very much. Really in this electrical question there are two separate businesses. One is the supply and distribution of electricity, and the other is the generation of electricity. Those are two entirely separate things, and when the hon. Member for West Ham pleads the case of local authorities being almost knocked out of business, you must remember that the function of a local authority is the supply and distribution of electricity. To let there spring up throughout the country nothing but small generating plant is thoroughly unwise. A generating plant must be concentrated in one particular place. That, is a thing which must be appreciated, because all these small towns getting coal by rail instead of by sea must add materially to the cost of electricity.

One other point with regard to the dividends of companies has been raised. There is, I admit, no provision as to the maximum dividend as it was put in the London Bill, but there is this particular Clause, that for three years the prices charged are to be revised by the Minister, who will go into the whole question from the point of view of what money is being made by the company, and the prices are to be revised on that basis, which will of course limit the profits. The prices are put into the Schedule of 2d. per unit for power, and 10d. for light after a certain amount. Those are the maximum limits. The point has been raised that the company is not on the King's Roll. I have enquired into this, and I hear that no fewer than 10¾ per cent. of the staff are disabled ex-service men and the company is quite willing to undertake to go on the Roll.

It is not a question whether the companies employ disabled men or not, but whether they are on the King's Roll and showing an example to the country.

I am not responsible for the direction of the company. My hon. and gallant Friend asked me for information, which I have given him. It is not on the Roll, but it will be put on.

As I say, I am not a director, but I understand the conditions the company are fulfilling are as onerous as are asked for by the King's Roll. This case to me seems rather analogous to that of Northampton many years ago when railways were constructed. They said: "Here is a line being put through our town, and we will have nothing to do with it," and they have regretted it ever since. Here we have a great county in which no electrical development is going on. If you refuse to give the Bill, at least, a Second Reading, you will regret it, and you will do an unwise thing.

The Parliamentary Secretary said that this company cannot supply in Southend unless Southend cannot supply sufficient electricity. Southend can only supply sufficient electricity if it has the power station, and it can only have that station if the Ministry allows Southend to have it. Am I right? Therefore, after a certain time in the growth of Southend—it does not take very long for the place to grow—this company would have a monopoly. I do not know. I am asking the Parliamentary Secretary a question on that point.

I tried to explain that the policy of increasing power stations all over the country is not a desirable one. Sooner or later, the concentration of powers of development into one station is desirable. As to my Noble Friend's own station, as he knows, that is one which contains big Diesel engines got from German submarines, and it would be inadvisable to extend that under present arrangements very far. If further developments take place, it would be better for everybody concerned for them to take power in bulk from a big station, and then distribute it themselves.

I very much regret to find myself in opposition to my hon. and gallant Friend, especially after the extremely able speech he has made in support of a horribly bad case. There is hardly anything that he said on general principles with which I do not agree, but I disagree with him when he comes to this particular Bill. I agree with him entirely as to the development of private enterprise, and the right of this House to encourage private enterprise as being on the whole the best and cheapest way to supply public services. I agree with him, also, that, on the whole, it is better that there should be very large generating stations rather than a large number of small generating stations, and that the municipal authorities should, as a rule, confine themselves to the distribution rather than the generation of electricity. But when I apply those general principles to this Bill, I ask myself what is there in this Bill which enables any local authority to confine itself to what my hon. and gallant Friend thinks is its duty, namely, the distribution and not the generation of electricity.

This Bill does not put this company under any obligation whatever to generate electricity anywhere, or to supply any local authority with any electricity at any time it does not relieve existing local authorities of their obligation to generate and distribute electricity. If it did, I should welcome the Bill. If the company were willing to do that, instead of corning here by Private Bill, they would have obtained a Provisional Order and would have put themselves under an obligation to do the very thing which the Minister says they ought to do.

IS the right hon. Gentleman speaking as a Minister, or in his private capacity?

I believe the position is, anomalous as it may seem, that we may "go as we please." My hon. and gallant Friend was speaking, as is his duty, for his Department, which does not deprive me of the duty ad the right to speak for the borough that I represent. I propose to speak for the borough that I represent, and their view is that they are not relieved by this Bill from the obligation that they have assumed of supplying their customers with electricity. If it were so, a totally different position would arise. We should then have to consider the question of whether public supply or private enterprise should be encouraged. In that case, I have not the slightest doubt that I should come down on the side of private enterprise. Then I should not have the support of those hon. Gentlemen opposite whom I shall find as strange bed-fellows in the Lobby to-night.

What obligation does this company assume? It assumes the obligation within two years—under Clause 16, I think it is—to produce a scheme. That is all. That scheme may include, or it may not include, the borough which I represent, or the borough which my Noble Friend the Member for Southend (Viscount Elveden) represents. If it does not include those districts, then the company is under no obligation whatever to generate and supply electricity to those districts. The only obligation which they assume is to produce a scheme. If the scheme is approved, then they will have to carry out the scheme, but that scheme may exclude large parts of an area, and those areas cannot in future rely upon this company to supply them with electricity. It is the abuse of private enterprise that I object to, and this is an abuse of private enterprise. I say to those who are supporters of private enterprise, that they have to be careful what they support in the way of private enterprise. I am a supporter of private enterprise, and I do not want to see it belittled by such a Bill as this.

My hon. and gallant Friend said that this company was going to fill a gap. That is a good phrase. He said that there were boroughs that were going to supply, and that this company was going to fill a gap. In what Clause is there any obligation upon this company to fill any gap? There is no obligation. There is an obligation to produce a scheme, under Clause 16. Possibly under Clause 9, if there is a guarantee to them of 20 per cent. per annum on their outlay, then there is an obligation for them to do something. I do not know what that may mean in the way of net profit. It does not seem to me to be a good advertisement of private enterprise, that a Clause of that sort should be desirable in a Bill. If there was an obligation to fulfil a public duty, I would accept the Bill, but there is no such obligation that I can find. The gaps are gaps which will continue to be gaps as far as this Bill is concerned. Worse still, once this Bill is passed, there is no inducement for any other company to come in and fill these gaps, because there is this big company, with the possible power to come at any time to compete with other enterprises.

On the question of the King's Roll, no answer has been given with regard to this company. I am surprised, because I know some of the Directors, and they are, as far as I know, in fact I am sure they are, the last men in the world to shirk public obligations. There is a public obligation on companies of this sort to come on the King's Roll, not merely to fulfil the duties of the King's Roll, but to do more, to be an example to other companies to do their bit, and to bind themselves to do it year after year. We do not place public contracts with those who are not on the King's Roll, and this House ought not to give separate and large powers to companies who have failed to take their obligations among those on the King's Roll.

I am extremely glad to be speaking on this Bill on the same side as the right hon. Member for Colchester (Sir L. Worthington-Evans). I was very much impressed by his fine sense of duty to the great municipality he represents, and I am hoping shortly to hear a speech on the same lines expressing the civic sense of Birmingham, from the hon. Member for Moseley (Mr. Hannon). I will deal with one or two rather broad points about this thoroughly bad Bill. I am a strong supporter of the idea of a joint electricity authority. We hope to have one for the London and home counties very shortly. But the principal thing that has been holding us up has been the existence of the power companies in the area with their anomalous position. The joint electricity authority which we are going to get is divided into three parts. One part is the company area, one part is the municipal area, the other part is handed over to the power companies. The real idea of this Bill is to put the county company, a distributing company, into the position of a power company which would make it the effective electricity authority for the whole of the county of Essex.

In the Electricity Act of 1919 the idea of an electricity authority was to represent in fair proportion those who are interested in the generation and distribution of electricity, and also the consumers and the local authorities. Unfortunately, the policy adopted here, as in the case of the North Metropolitan, is to put the whole area into the hands of a private company. It has been suggested that the county company will develop this area. What have they done already in the large part of Essex which they have? The greater part is absolutely untouched by electrical development. It is illusory to talk of the great possibilities when the Barking station becomes ours in 1971. I doubt if I shall he taking any interest in electrical matters at that time. I am sure the directors of the company are not thinking of 1971. They think that they will probably get enough profit before that time, and that is what they are really looking for. But a more serious thing than the actual position in Essex is the threat to municipalities all over the country by this development of giving a power company the powers of a distributing company, that is, handing over a portion of the country as a practical freehold to these companies. It is all very well to say that we hope that in a few years a different Parliament may come along and take them out altogether. But the actual effect is to hand over these areas to power companies.

10.0 P.M.

Power companies I do not deny have done a certain amount of useful pioneer work. But their anomalous position does not fit in with the modern idea of a joint electricity authority. Look at the county of Essex. It does not seem to me a right thing to hand it over to one company It has been pointed out that a great deal of it is a rural area. We all want to see a development of the use of electricity in rural areas in assisting agriculture. I do not think that we are likely to get that from the county company. I think that the way to develop an area like the county of Essex is for the people, of Essex to have some control in saying how they want electricity developed. It is clear that the county company will not be likely to undertake experiments in rural development in the outer parts of Essex, and that is what is wanted in Essex and other counties.

Personally I am sorry that the Electricity Commissioners, in delimiting the London and other areas, took in only the densely populated parts of the country. I would much rather have seen electricity regions which would deal with the industrial areas and extend out into these rural areas. I should have liked to see Essex come in with London, but I do suggest that the evidence before this House is overwhelming against this Bill. It is opposed by the great Corporations of the country it is opposed by that part of Essex which is directly affected. I see that it is supported by the one authority in the whole county that has nothing to do with electricity. The county council has nothing to do with electricity. It is opposed by municipal corporations generally. It is opposed on every side. I was sorry that the Minister of Transport (Colonel Ashley) has felt himself obliged to support this Bill. If this Bill is thrown out, it will not affect the other arrangements which have been made for developing and centralizing generation in the London area. It is purely a Private Bill in the interest of a single company, and I hope that the House will reject it.

I think that it has been appreciated in the past that if there is one subject which I dislike speaking about in this House more than another, it is the subject of electricity supply. But upon occasions I feel it my bounden duty to say a word or two, because there is imposed upon me an obligation, due to perhaps a somewhat extensive knowledge of and contact with these matters, that I should offer to the House such advice as I can tender to it. I confess that I was very surprised to listen to the words which fell from my right hon. Friend who represents the Borough of Colchester (Sir L. Worthington-Evans). I have no interest whatever in this Bill except perhaps such interest as would be commercially opposed to the development of this company. But I think that it would have been better if the right hon. Gentleman who, I am sorry to say, has left the House, had explained to the House the fundamental procedure which underlies the promotion of Private Bills, and had informed hon. Members that, before a Bill can be presented, it has to go through all the forms of procedure which are prescribed. Notice has to be given in the "Gazette," and all the interested parties have to be informed so that they may lodge all objections, and ultimately the Bill is presented to this House, after conforming to all the conditions and regulations laid down.

We, to-night, are considering the Second Reading of a Private Bill which was promoted originally some time over 19 months ago. It has gone through all the usual procedure, and not only that, but it has been presented, in the first instance, accidentally, in another place and has gone through the Committee stage in that house, after having obtained its Second Beading. It has stood the fire of criticism of that Com- mittee. It now comes before this House, and we are asked to-night to consider whether it is right to send this Bill upstairs to a Committee of hon. Members of this House, who are specially selected and qualified, who have taken a pledge that they will consider all the evidence put before them and give a judicial decision as to whether it is right, and in the interests of the public, that they should pass the preamble of this Bill as proved or disproved.

What are we doing to-night? We are endeavouring, on ex parte statements, to constitute ourselves a committee and judge of the details and merits of this Bill. [Hon. MEMBERS: "No!"] That is the fact. Suppose I make a speech supporting this Bill. What I tell you is purely an ex parte statement honestly delivered, and as sincerely believed. Are you entitled, because I, in all my sincerity, tell you what I believe to be true, to say that you can come to a clear judgment on that? You do not disbelieve me. You accept what I say as being the truth as I believe it. Is it right that you should pronounce on a Measure of such magnitude and complexity, and that you should constitute yourselves a Private Bill Committee of this House hearing the whole evidence submitted to you by witnesses on both sides, and submitted by counsel on cross-examination—are you entitled to come to a decision on a Measure of such complexity?

On a point of Order. Is the hon. Gentleman entitled to suggest that we, sitting here to discuss the Second Reading of this Bill, are not entitled to vote against it or to speak against it?

The hon. Member was putting a perfectly proper argument before the House, and there is no objection to what he is saying.

I am sure that the hon. Member who interrupted had not the slightest intention of suggesting any improper motive. When this Debate closes it is the right, the privilege, and, more, it is the duty of every hon. Member to vote according to what he believes to be right and proper in the interests of the public. I would be the last to deny that. What I wish to impress upon hon. Members is this; That no hon. Member should divide and go into the Lobby against this Bill under any misconception as to what is the Private Bill procedure of this House. Given that that is understood by all hon. Members, I am sure that no hon. Member will contest their right or will disagree with their decision, whatever it may be. I think the right hon. Member for Colchester was quite wrong when he said that there could be any sacrifice of public interests. For a moment, I am dealing with that aspect, although to a large extent it comes outside the scope of a Second Beading Debate. I think the right hon. Gentleman was wrong and was possibly labouring under a misapprehension of the facts.

As I understand it—my source of knowledge is no greater than that at the disposal of any hon. Member—a company is proposing to add to its area a large district in the County of Essex, that they say, "Within two years we will submit proposals for the development of this area." Obviously it will take some time if you are to make a proposal for the development of a great district. They say, "We will give bulk supplies to various municipalities and other authorities within that county." Very well. Suppose, in fact, that that company fails to make these proposals within that time. What damage has been suffered by those who have not at the present moment before them any alternative proposal for the development of the district? If hon. Gentlemen say, "But there is a concrete proposal for the development of this district now by some other authority; a county authority or municipal authority or a combination of private interests have before this House now an alternative proposal for benefiting the people in that area, have concrete proposals as to how they would develop electricity supply within that area," I could then understand them. If they say, "We are faced with two proposals: there is an alternative proposal which will more readily develop the electricity supply of this area and will be of greater benefit," then I could understand them. But there is no such alternative proposal, and in view of that fact we have one duty in this House and one day only, and that is to say that if these people have complied with all the Private Bill procedure laid down, we should send the Bill to the Committee in order that they may find whether there is anything in the Preamble of the Bill which is against the public interest. I support the Second Reading of the Bill.

I think the House must be somewhat astonished that the hon. Member who has just spoken, with all his knowledge of the subject, should not have dealt more with the merits of the question. His suggestion that this, being a Private Bill, should not be considered on its merits and on the broad question of principle was—I do not want to use an objectionable expression—rather special pleading. This Bill is not like any ordinary Private Bill, that goes before the Private Bill Legislation Committee. It is a Bill which opens up fundamental principles as important as those which were discussed by the hon. Gentleman himself in Committee on the Electricity Bill of 1919. In fact, it is because of the failure of another place to allow the 1919 Bill to go through in the form in which it originally passed this House and owing to the alterations made another place that we are faced with our present difficulty. The Bill of 1919, on which this House spent considerable time in Committee gave us the machinery whereby these joint electricity authorities could have been started, and they would have been functioning now if the proposal had not been emasculated elsewhere.

We have had an extraordinary evening. We had the Minister of the Government who is responsible for the Bill coming down apparently with Government authority begging the House to pass the Bill, and immediately afterwards we had the Secretary of State for War, a member of the Cabinet, coming down and with all the force and eloquence at his command asking the House to reject this Government Measure. [HON. MEMBERS: "Not a Government Measure!"] We hear in the Press and elsewhere rumours of party difficulties and divisions, but where have we more obvious evidences before the House of the most serious cleavage in the present Cabinet? We had a most excellent speech from the Secretary for War, and I have no doubt that the House will follow his advice. The Minister responsible for the Bill stated, in introducing it, that he felt himself in a difficult position. He played his part well. He told us that he really was half in favour of private enterprise and half in favour of public enterprise. I gather that having given a vote last week for what he considered to be public enterprise, he felt that to-night he ought to give a vote for private enterprise. [HON. MEMBERS: "Which do you support?"] If my hon. Friends will contain themselves in patience I hope to be able to show them. I agree with the Parliamentary Secretary when he said that the question of bulk supply was entirely different from that of mere distribution. Surely one of the principles underlying the Bills of 1919 was that the bulk supply should be in the hands of the joint electricity authority. It is because this Bill runs counter to that sound fundamental principle that I join in asking the House to reject it. The Parliamentary Secretary gave one illustration of the contrast between public and private enterprise. He quoted the case of the North-East coast and said the North-East Power Company supplied at an average rate of ½d. per unit. He did not tell the House that the North-East Company charges 6d. per unit for the lighting of ordinary households, whereas the Glasgow Corporation and the borough of Darlington, in the area of the company, charge 3d. per unit for the same service.

I am only giving the other side of the picture. If, as so often happens, the power companies can pick out the plums of the service, then they can occasionally show a very small average rate. However, it is not so much a question of the merits of private or public enterprise, but it is of importance to see that nothing is done by this House to-night which will prejudice the future development of electrical supply in this district, What the House had in mind in the 1919 Bill was that in the past our views had been too circumscribed, that we had one municipality vying with another in the supply of this all-important service, and it was regarded as essential that we should have a coordinated service in order that electricity might be generated on a basis which would provide the cheapest unit in a given district. The policy of having a joint electricity supply authority for bulk stations is a sound one, and I submit that by passing this Bill the House will destroy the possibility of that policy being carried out in the area under consideration. The Bill proposes to give an extraordinary monopoly and extraordinary rights and privileges to this company. It goes much beyond a past legislation in giving special privileges to a private company. References have been made to the objection of local authorities to the Bill. Not only Colchester and Southend, but the Association of Municipal Corporations, representing the municipalities of the country, are opposed to the Bill. They speak with authority; they represent no party interest or no special interest, but take a wide view of the general welfare of the community, and their evidence should weigh with the House.

I hope we shall hesitate before handing over this area to the company. Illustrations have been given of the difficulties experienced by local authorities which are in the hands of power companies. May I cite two cases? The Corporation of Retford recently promoted a Bill to enable them to supply electricity throughout the neighbouring localities. The Bill was opposed by the Derbyshire and Nottingham Power Company, which got these powers 22 years ago and had not exercised them but objected to Retford doing this public service. Sheffield and Rotherham were anxious to supply neighbouring authorities with power but the Yorkshire Electricity Power Company, because of powers given to it by this House, objected to the extension of the legitimate functions of these municipalities. The hon. Member for Hampstead (Mr. C. Balfour) said this Bill specified that in two years' time certain schemes should be outlined. Had he told us that if these schemes were not outlined at the end of two years the powers would lapse, there might be something to be said for the Bill.

Surely the Committee if they see fit will put in the appropriate provision to meet the hon. Member's point.

The hon. Member must remember that this Bill has already been through the Committee stage in another place, and that those safeguards have not been put in, and this House will be very doubtful as to whether there is any possibility of getting those safe- guards put in in Committee upstairs. I hope the House will not be beguiled by the sophistry of the hon. Member, but will realise that what has happened in another place is probably evidence of what would happen here, the majority being the same, and therefore, taking no risks, will reject this Bill.

I am afraid I must commence my few observations by regretting a considerable amount of waste of time during the discussion to-night. The real question before the House is whether you are going to have this Bill, or whether you are going to have no scheme for the development of electrical supply in the county of Essex at all. That is the plain, practical question which the House is called upon to decide. The County of London Electric Supply Company, which is promoting this Bill, has already given evidence of abounding enterprise in the great work it has achieved in the generation and distribution of electricity in the County of London. It is the first body in this country that has undertaken the responsibility of creating a super-station on the lines which are admitted now by all expert authorities to be the most efficient and economical for distributing abundant and cheap electricity. This great station is now in process of completion with regard to the first section of it. In the course of a few months it will be enabled to enlarge enormously the amount of electricity available for light and power purposes over a large part of the east and south of London, and it has enormous facilities for further development. This enterprising corporation comes to this House and asks for authority to extend its activities over a part of the country which, unless these activities begin to operate, will have no opportunity of developing an electricity supply at all.

A great deal has been said to-night about these boroughs that think they are so seriously affected by this Bill. My right hon. Friend the Secretary of State for War comes down here, with his dramatic way and with his fiery eloquence, and tells the House of the danger of this experiment to the people of Colchester, and, having thus made his speech, which, with six headlines, will be placarded over Colchester to-morrow as being to the credit of the Secretary of State, he leaves the House and does not wait to hear a single argument in favour of the Bill.

Every hon. Member knows that in all these power Bills—and there is nothing new introduced into this Bill that does not already exist in other power Acts—there is introduced what is called the Kitson Clause. This Clause is embodied in Clause 8 of the Bill, and it affords the fullest protection to those boroughs who think their interests are injured by this Bill. I commend it to my Noble Friend the Member for Southend (Viscount Elveden), with whom I am sorry to differ on any question in this House, and I hope he will call the attention of his constituents to the ample provision made in Clause 8 for the protection of their interests. I do not propose to weary the House by reading the whole of this Clause, but I would point out that it is there laid down, as a proviso that:

If the hon. Member comes down to my constituency, he will find that their estimate of me is as high as that of his constituents of him. The promoters of the Bill will be prepared to give this undertaking to the Borough of Colchester—and I am sorry my right hon. Friend is not present to hear the statement—the powers of supplying electricity in Colchester shall remain in abeyance until the Electricity Commissioners decide that the county company is in a position to proceed forthwith with its work for meeting the demand in Colchester. That, I think, ought. to be satisfactory to my right hon. Friend, if he were in the House to receive that assur- ance. That is a point which naturally would come before the Committee upstairs, and be examined in the fullest degree.

The hon. Gentleman has just shown that he is an interested person in this Debate, and I would ask whether it is in order?

If the promoters of the Bill are unable to speak for themselves on the Floor of the House, it is quite a proper thing that they should entrust some Member with their case.

I have not one shilling's worth of interest of any sort or kind in this company. I have not any interest whatever in the company, but I stand up in this House, and shall continue to stand up in this House, or private enterprise. I do not want to see tinkering schemes brought into operation to stop the working of this Bill. In his evidence, the Chief Electricity Commissioner pointed out that for a long period of time there would be no possibility of organising a joint electricity authority in this part of the country. He further pointed out that, on the advice of competent legal advisers, no monopoly was accorded by this Bill. All the evidence given before the Committee in another place tended to show that the Bill was necessary for the extension of electricity development in a part of the country which cannot otherwise obtain it, that it enabled a great power station to employ its facilities for the distribution of power and the enlargement of industrial enterprise on the east side of the City of London long the lines proposed there are immense opportunities for the development of industrial enterprises. Before this enterprise of electricity, generated at this great power station, becomes available, we had a step taken by hon. Members opposite against development, and they apparently do not desire to give a Second Reading to this Bill. The whole scheme of electricity development, worked out as it is with great care and great devotion to duty by the Electricity Commissioners, will be null and void if this Bill does not receive a Second Reading in this House. Everybody in the House admits that electricity development and supply is an essential part of our economic life. The sort of action by hon. Members to-night is putting back the hands of the clock, and will be, in my judgment, and that of others, a disastrous step for this House to take.

I want to make one observation as to the methods that have been employed in working up the opposition to this Bill. I do not want to say a single unkind word about any person who is not capable of defending himself in this House, but I do suggest that it is not the function of a Parliamentary agent to back up the opponents of the Bill, and at the same time to use his influence as the secretary of a voluntary organisation outside to manufacture opposition against it. An immense amount of correspondence has been received by hon. Members of the House—[HON. MEMBERS: "On both sides!"]—from town clerks and secretaries of urban councils, asking them to vote against the Bill. Members have been written to upon it and asked to vote against the Bill. I do not believe that in 1 per cent. of cases in which communications have been addressed to hon. Members of this House, that the merits of this Bill have ever been considered by the local authorities The letter was addressed to the town clerk, and the town clerk, probably as a member of the Association of Municipal Corporations, wrote to one or two of the Members whom he might know, or he might write to his local Member, asking him to support the resolution passed in the council. [HON. MEMBERS: No!"] There were very few resolutions passed. [An HON. MEMBER: "What about Birmingham!"] The whole thing has been done in a hurried and irresponsible way. Members of Parliament have been bombarded by these letters. The real merits of the case have not been considered, but they were asked to vote against the Bill. To say that the gradual trend of electricity undertakings is towards private enterprise at the expense of the municipal authorities is entirely unjustifiable. The Electricity Commissioners, as has been stated to-night by the Minister, have taken the greatest care to hold the balance even between the respective administrative merits of both classes of enterprise, and they have found—and the experience of the whole country is—that only private enterprise can really undertake operations of this magnitude. No single municipal authority to-day will undertake any considerable investment in order to create facilities for distribution in Essex. You have to get the security of a great corporation like the County Council of London in order to warrant them investing the capital in the development of an essential public utility service of this kind. The proper place to deal with many of the points raised is in Committee upstairs. The promoters of the Bill are not cast-iron individuals who are not open to the suggestion of compromise or arrangement——

I suggest that many of the points presented in the Debate tonight by hon. Members on this side of the House would more properly be dealt with when the Bill comes before Committee upstairs. This is an absolutely essential Bill for the development of electricity supply in London, in the rural areas, and in the small villages which otherwise cannot be developed. Secondly, it is a Bill absolutely necessary to enable a great private scheme of electricity distribution to be organised by the Electricity Commissioners. Thirdly, it is essential because it provides power for the development of industrial enterprise on a large scale on both sides of the river and in the neighbourhood of London. It is a Bill which ought to receive the support of Members, because it brings within its scope great possibilities for rural development in the vicinity of London. The other day the House was discussing the importance of encouraging rural economy and the development of rural enterprise. This company, laying its mains in rural areas, and offering facilities for the employment of electricity for rural purposes, will do a great national service, and confidently hope the House will give the Bill a Second Reading.

As the hon. Gentleman is speaking for the company, I would like to ask him if he has got no reply to make on behalf of the company as to the charge heard in this House that the company is not on the King's Roll?

I did not refer to that question, because a similar point was put to the Minister and the Minister replied. I will make this reply to the hon. Gentleman opposite. The company is not on the King's Roll—[HON. MEMBERS: "Shame!"]—for some reason which has not been explained to me satisfactorily. I want to be quite frank about it. The company did not get itself on the Roll, but its record in regard to ex-service and wounded men stands very high. As was stated by the Minister, nearly 11 per cent. of its men are disabled men and 467 went to the Colours, 32 of whom lost their lives. The company made arrangements for special allowances to these men while they were at the Front, and kept their places open for them till they got back.

May I ask the hon. Member if he knows how long the King's Roll has been in existence, and how long the company has not been on the Roll?

My hon. and gallant Friend knows that I know it as well as hr does, because I had something to do with the beginning of the King's Roll. It has been a long time in existence. I am not making any excuses, except to say that the company has discharged its duties.

There are no two Members of this House who can make a better case for private enterprise than the two hon. Members for Hampstead (Mr. G. Balfour) and Moseley (Mr. Hannon), and the, fact that they have been compelled to make the speeches they have proves they have been burdened with a very bad case. The right hon. Gentleman the Member for Colchester (Sir L. Worthington-Evans), also a supporter of private enterprise, was himself driven to admit that this Bill represented private enterprise run mad, and it is a rather serious reflection that in the early part of this Parliament the House should be asked to commit itself to the adoption of private enterprise in a specially objectionable form. It was stated by the Parliamentary Secretary, who defended this Bill, that in the County of Essex no electrical development was going on. I suggest that if the blockade is removed this development may take place, and in any case the local authorities should be quite free to develop it, if they wish without this menace being held over them. I do not wish to enter unduly into the question of this particular company not having qualified itself by being appointed on the King's Roll, but I am perfectly sure that if it had been a cooperative society applying to this House for privileges far less than those now applied for by this company there would not have been a Member of this House who would not have condemned that society.

If any body, municipality, co-operative society, or any other association or person applies to this House and goes through the whole of the Private Bill procedure, and afterwards presents a Bill, I should say exactly what I said here to-night, that it was right and proper for that Bill to go to the Committee in order that it might be properly investigated.

After what has been said I hope we shall not hear anything again from hon. Members opposite about it being the duty of companies to put themselves on the King's Roll. We are now told that we should accept this Bill because has got through another place, and because it has passed through certain Committees. I say this House has no right——

The hon. Member alleges that I said certain things. May I point out that it was the hon. Member for West Middlesbrough (Mr. T. Thomson) who said that a Committee of this House would have no power in this matter. On the contrary, I think the Committee has full power to deal with this Measure.

The hon. Member said that because this Bill had passed through another place, therefore we were to accept it practically as it stood.

The hon. Member spoke of this Bill in that paternal and affectionate way which leads one to believe that this Measure is going to confer vast benefits on the community instead of saddling it with burdens. The Bill raises certain very grave matters of principle which this House cannot overlook. It raises the important principle whether a company should be given the monopoly rights of a power company to the prejudice of local authorities or rather undertakings. I venture to prophesy that if it had been the London County Council which had applied to this House for similar powers, there would not have been one hon. Member opposite who would not have denounced the application as almost impertinence The principle we have in our minds is this. We are asked to create a vested interest for a number or profiteers in order that the consumers in any area should be charged at higher rates and have irreparable damage done to the undertakings that exist. Further, this Bill creates in perpetuity monopoly tights, and it provides no provision for future purchase, so that if we give assent to this Bill and it goes through Committee without serious alteration, we shall be giving to this company a monopoly which will last for ever, so far as we can foresee. We cannot tell what the development of electrical science will be; we cannot tell what the needs of the county of Essex and of that part of London which this Bill touches will be. I suggest that, while this House is omnipotent and can do whatever it likes in its wisdom, even this House has no moral right to hand over future generations to the care of the London County Electric Supply Company.

That is a thing that we really must remember. There are various serious grievances that may be urged against this Bill, but arguments on both sides have been used and I have, no desire to trespass unduly upon the patience and kindness of the House. I will say a word, however, in relation to one argument that has been used. It is said that this would give rise to a certain amount of employment, which, as we all know, the country very badly needs. Amongst all the wrongs that I think are done to the unemployed, there is no wrong greater or harder to bear than that they should be used to justify gentlemen who seek to promote this Bill for their own special interests, and I hope that that argument, at any rate, will have no weight with hon. Members when they go through the Lobby. My final word on the matter would be that this Bill is not opposed from one side of the House merely; it is opposed by very many local authorities; it is opposed by all the existing undertakings; it is opposed by the Association of Municipal Corporations, of which I have the honour to be a vice-president; and, because the Bill is selfish in its origin and unjust in its provisions, I beg this House not to accord to it the Second Reading that is asked for it.

Some reference has been made to the position of this company in regard to the King's Roll, and, as I am honorary secretary of the King's Roll National Council, I think it is only fair and right that I should explain in a few words what the real position of this company is. When we had a Debate on that question last week those Members of the House who were present may recollect that I explained that the National Council went into the whole question of public utility companies last year. We made a list of all the big public utility companies who were not on the Roll, and sent a personal appeal to them, either direct from the Council or through the King's Roll local committee. This particular company was appealed to by the City of London King's Roll Committee, and they could get no satisfaction out of the company at all. The vast majority of the public utility companies in the country are on the Roll and are doing their duty, but there is a small group of electric lighting companies in and around London who ignore the Roll entirely, and refuse to answer letters that are sent to them, and this is one of the companies in question.

When I knew that this Bill was coming on this evening, I rang up the King's Roll Committee in the City of London from my office this morning, and they informed me that they had had no application from this company at all up to this morning, and had heard nothing further from them; so that, when the Parliamentary Secretary says that this company is willing to come on the Roll now, and when the hon. Member for Moseley (Mr. Hannon) says they employ such-and-such a percentage of ex-service men, I am afraid that those remarks do not in the least impress me. If this scheme of voluntary effort that we are trying to carry out, in place of the only alternative of compulsion, is going to be made a success, then both the emplpoyés and the employers of this country have to approach it in a right spirit, and not in a spirit of death-bed repentance. If we are to deal with the question at all, we have to deal with it from altruistic motives, and because people believe that we owe a debt to these disabled men—not because we think we are going to get something out of it. I am a Lancashire Member, and am not vitally concerned in this Bill or vitally interested in its details, but, as a soldier, I am, like a large number of other younger Members on this side of the House, determined that we will oppose every single public utility company that comes to this House for special powers and privileges and that has declined to have anything to do with the King's Roll, because we believe that that is the only way in which we can not only make those companies toe the line, but make the country itself understand that, when we pass a Resolution, as we did last week, saying that we in this House believe that no avenue should be left unexplored to try and find a solution of this question, we mean what we say, and that we are not paying merely lip service to this question, but that we realise that these men have done a great work, that if it were not for the work that they have done, this company might not be in existence at all, and that we owe them a debt which we have not yet paid. For that reason I hope every Member of this House who has any interest in these men and believes in looking at this question from the national standpoint will vote against the Second Reading.

In view of the fact that the Minister has made a statement that this company was prepared to come on the Roll, will he say when he was told that?

I asked that question to-clay, and got the answer to-day. I was told to-day.

Like the previous speaker I am not a London Member, and therefore not vitally interested in the Bill as are some Members. I represent a constituency in South Wales. The reason I want to speak is because I have been asked by the municipality of my constituency to oppose this Bill because of the badness of the principle contained in it. Reference has been made to the cheapness of electricity supply. I want to agree with what the Minister has said with regard to the futility of attempting to supply electricity through a multiplicity of generating stations. I was a member for some considerable time of the Electricity Committee of Manchester Corporation, a Corporation with a tremendous generating station. I know by experience there, and by discussions among experts, that what is needed in this country are large generating stations and the supply of electricity in bulk to distributing authorities. I respectfully submit that this Bill does not contain any element of cheapness so far as the consumers are concerned. In the Schedule it is laid down that this company can charge as high as almost 1s. a unit as a maximum for the first 15 units. After that maximum the price is to be 10d. In concerns of this description the maximum tends to become the minimum, and I submit that under these conditions it is no use arguing at all about supplying cheap power. Reference has been made to the cheap power which can be supplied. I have a bill in my hand submitted by the Manchester Corporation Electricity Department to a user of electricity. This man is a small cottager. He uses current for lighting, cooking and heating purposes. The Manchester Corporation have a public supply and charge 14s. a fixed price. After that price the charge is ½d. per unit. This bill declares that in this particular period of time this gentleman consumed 712 units and the charge was ½d. per unit. The result of that of course is that a change is rapidly coming in in the City of Manchester. When electricity can be supplied by public authorities at a price like this it becomes practical question that can be dealt with, Here you have a cheap source of supply and there is no private company in the country that can supply electricity as cheaply as the Manchester Corporation is doing. Even the vaunted North-Eastern Company cannot, I think, come up to this price, but are a little bit aver. Even there the North-Eastern Company is untroubled by the confines of a municipality. It covers a very large area, densely populated and highly industrialised, and has a chance which even the Manchester Corporation has not got. It is confined to its own area. Here you have this great public authority attempting to foster its trade and industry and to supply its citizens with cheap power at ½d. This is a principle which the House would do well to consider. I further oppose the Second Reading because I think before we invest this company with these tremendous perpetual powers the Government ought to tell us what its national policy is going to be. We have considered on more than one occasion lately the question of the safeguarding of industry. If the Government were to take in hand this question from some point of view or another and table their proposals for the supply of cheap power to manufacturers they would do far more to safeguard our industry in competition with modern competitors than all the tariffs they could impose, which in the end would defeat themselves. Before this Bill receives a Second Reading the Government ought to table their proposals for a national supply of electricity and let us know how far we are justified in bestowing these powers upon a company in perpetuity.

I therefore ask Members of all parties who oppose the Bill to carry their opposition into the Lobbies and vote against it.

When I heard the allegation which has been made in the House I made it my business to ask the agent what was the fact, and the fact is that this company, though it has foolishly neglected to sign the King's Roll, does intend to employ twice the number necessary to qualify for that Roll.

Question put, "That the word 'now' stand part of the Question."

The House divided: Ayes, 80; Noes, 183.

Division No. 20.]

AYES.

[11.0 p.m.

Alexander. E. E. (Leyton)

Fremantle, Lieut.-Colonel Francis E.

Morden, Col. W. Grant

Ashley, Lt.-Col. Rt. Hon. Wilfrid W.

Gates, Percy

Nall, Lieut.-Colonel Sir Joseph

Baird, Rt. Hon. Sir John Lawrence

Gibbs, Col. Rt. Hon. George Abraham

Neville, R. J.

Balfour, George (Hampstead)

Grant, J. A.

Nicholson, William G. (Petersfield)

Barclay-Harvey, C. M.

Greene, W. P. Crawford

Nield, Rt. Hon. Sir Herbert

Beamish, Captain T. P. H.

Grotrian, H. Brent

Ormsby-Gore, Hon. William

Bellaire, Commander Canyon W.

Guinness, Rt. Hon. Walter E.

Rees, Sir Beddoe

Bourne, Captain Robert Croft

Harland, A.

Reid, Capt. A. S. C. (Warrington)

Bowater, Sir T. Vansittart

Hope, Sir Harry (Forfar)

Remer, J. R.

Brittain, Sir Harry

Hopkinson, A. (Lancaster, Mossley)

Rhys, Hon. C. A. U.

Brocklebank, C. E. R.

Iliffe, Sir Edward M.

Richardson, Sir P. W. (Sur'y, Ch'ts'y)

Burman, J. B.

Jackson, Sir H. (Wandsworth, Cen'l)

Salmon, Major J.

Cassels, J. D.

Kindersley, Major Guy M.

Sanders, Sir Robert A.

Cautley, Sir Henry S.

Looker, Herbert William

Sanderson, Sir Frank

Chadwick, Sir Robert Burton

Lougher, L.

Savery, S. S.

Cochrane, Commander Hon. A. D.

Luce, Major-Gen. Sir Richard Harman

Smith, R. W. (Aberd'n & Kinc'dine, C.)

Conway, Sir W. Martin

Lumley, L. R.

Smithers, Waldron

Couper, J. B.

Lynn, Sir Robert J.

Spender Clay, Colonel H.

Cowan, Sir Wm. Henry (Islington, N.)

MacAndrew, Charles Glen

Sprot, Sir Alexander

Crookshank, Cpt. H. (Lindsey, Gainsbro)

McDonnell, Colonel Hon. Angus

Stuart, Crichton, Lord C.

Curzon, Captain Viscount

MacIntyre, Ian

Welts, S. R.

Dalkeith, Earl of

McLean, Major A.

Wheler, Major Granville C. H.

Dawson, Sir Philip

Macmillan, Captain H.

Williams, Herbert G. (Reading)

England, Colonel A.

Makins, Brigadier-General E.

Wise, Sir Fredric

Erskine, Lord (Somerset, Weston-s.-M.)

Marriott, Sir J. A. R.

Fermoy, Lord

Mitchell, S. (Lanark, Lanark)

TELLERS FOR THE AYES. ——

Fielden, E. B.

Mitchell, Sir W. Lane (Streatham)

Lieut.-Colonel Sir Frederick Hall and Mr. Hannon.

Ford, P. J.

Moore-Brabazon, Lieut.-Col. J. T. C.

NOES.

Acland-Troyte, Lieut.-Colonel

Burton, Colonel H. W.

Elveden, Viscount

Adamson, Rt. Hon. W. (Fife, West)

Buxton, Rt. Hon. Noel

Fairfax, Captain J. G.

Alexander, A. V. (Sheffield, Hillsbro')

Cadogan, Major Hon. Edward

Finburgh, S.

Ammon, Charles George

Charleton, H. C.

Forrest, W.

Applin, Colonel R. V. K.

Clarry, Reginald George

Gadie, Lieut.-Col. Anthony

Attlee, Clement Richard

Clowes, S.

Ganzoni, Sir John

Baker, J. (Wolverhampton, Winton)

Cluse, W. S.

Garro-Jones, Captain G. M.

Balniel, Lord

Cohen, Major J. Brunel

Gillett, George M.

Barker, G. (Monmouth, Abertillery)

Colfox, Major Wm. Phillips

Glyn, Major R. G. C.

Barnes, A.

Collins, Sir Godfrey (Greenock)

Graham, D. M. (Lanark, Hamilton)

Barnston, Major Sir Harry

Compton, Joseph

Greenall, T.

Barr, J.

Connolly, M.

Greenwood, A. (Nelson and Coine)

Beckett, John (Gateshead)

Courthope, Lieut.-Col. George L.

Grenfell, D. R. (Glamorgan)

Blades, Sir George Rowland

Cowan, D. M. (Scottish Universities)

Groves, T.

Blundell, F. N.

Craig, Ernest (Chester, Crewe)

Grundy, T. W.

Bowerman, Rt. Hon. Charles W.

Crook, C. W.

Guest, J. (York, Hemsworth)

Briscoe, Richard George

Crooke, J. Smedley (Deritend)

Hacking, Captain Douglas H.

Broad, F. A.

Davidson, Major-General Sir J. H.

Hall, G. H. (Merthyr Tydvil)

Bromfield, William

Davies, A. V. (Lancaster, Royton)

Hall, Capt. W. D'A. (Brecon & Rad.)

Bromley, J.

Davies, Maj. Geo. F. (Somerset, Yeovil)

Hamilton, Sir R. (Orkney & Shetland)

Brooke, Brigadier-General C. R. I.

Davies, Ellis (Denbigh, Denbigh)

Hardie, George D.

Brown, Maj. D. C. (N'th'l'd., Hexham)

Davies, Rhys John (Westhoughton)

Harris, Percy A.

Brown, James (Ayr and Bute)

Day, Colonel Harry

Harvey, Major S. E. (Devon, Totnes)

Buchanan, G.

Edwards, C. (Monmouth, Bedwellty)

Hastings, Sir Patrick

Hayday, Arthur

Montague, Frederick

Stephen, Campbell

Hayes, John Henry

Morrison, R. C. (Tottenham, N.)

Stewart, J. (St. Rollox)

Henderson, Capt. R. R. (Oxf'd, Henley)

Naylor, T. E.

Stuart, Hon. J. (Moray and Nairn)

Henderson, T. (Glasgow)

Newman, Sir R. H. S. D. L. (Exeter)

Sutton, J. E.

Henderson, Lieut.-Col. V. L. (Bootle)

Nuttall, Ellis

Taylor, R. A.

Heneage, Lieut.-Col. Arthur P.

Oakley, T.

Thomas, Rt. Hon. James H. (Derby)

Henn, Sir Sydney H.

O'Connor, T. J. (Bedford, Luton)

Thompson, Luke (Sunderland)

Hennessy, Major J. R. G.

Polio, John Henry

Thomson, Trevelyan (Middlesbro, W)

Herbert, S. (York, N. R., Scar. & Wh'by)

Paling, W.

Thurtle, E.

Hirst, G. H.

Pethick-Lawrence, F. W.

Tinker, John Joseph

Hirst, W. (Bradford, South)

Peto, Basil E. (Devon, Barnstaple)

Titchfield, Major the Marquess of

Horlick, Lieut.-Colonel J. N.

Pielou, D. P.

Trevelyan, Rt. Hon. C. P.

Hudson, Capt. A. U. M. (Hackney, N.)

Ponsonby, Arthur

Viant, S. P.

Hudson, J. H. (Huddersfield)

Potts, John S.

Waddington, R.

James, Lieut.-Colonel Hon. Cuthbert

Radford, E. A.

Wallhead, Richard C.

Jenkins, W. (Glamorgan, Neath)

Raine, W.

Ward, Lt.-Col. A. L. (Kingston-on-Hull)

John, William (Rhondda, West)

Rice, Sir Frederick

Warne, G. H.

Johnston, Thomas (Dundee)

Richardson, R. (Houghton-le-Spring)

Watson, W. M. (Dunfermline)

Jones, Henry Haydn (Merioneth)

Riley, Ben

Welsh, J. C.

Jones, T. I. Mardy (Pontypridd)

Robinson, W. C. (Yorks, W. R., Elland)

Westwood, J.

Kennedy, T.

Ropner, Major L.

White, Lieut.-Colonel G. Dalrymple

Kidd, J. (Linlithgow)

Saklatvala, Shapurji

Wignall, James

Kirkwood, D.

Salter, Dr. Alfred

Wilkinson, Ellen C.

Knox, Sir Alfred

Scrymgeour, E.

Williams, C. P. (Denbigh, Wrexham)

Lamb, J. Q.

Scurr, John

Williams, T. (York, Don Valley)

Lansbury, George

Sexton, James

Wilson, Sir C. H. (Leeds, Central)

Lee, F.

Shaw, R. G. (Yorks, W. R., Sowerby)

Wilson, C. H. (Sheffield, Attercliffe)

Little, Dr. E. Graham

Shiels, Dr. Drummond

Windsor, Walter

Livingstone, A. M.

Skelton, A. N.

Windsor-Clive, Lieut.-Colonel George

Lowth, T.

Slaney, Major P. Kenyon

Womersley, W. J.

Lunn, William

Slesser, Sir Henry H.

Wood, B. C. (Somerset, Bridgwater)

MacDonald, Rt. Hon. J. R. (Aberavon)

Smillie, Robert

Worthington-Evans, Rt. Hon. Sir L.

Mackinder, W.

Smith, H. B. Lees (Keighley)

Wright, W.

MacLaren, Andrew

Smith, Rennie (Penistone)

Yerburgh, Major Robert D. T.

March, S.

Snell, Harry

Young, Robert (Lancaster, Newton)

Margesson, Captain D.

Stamford, T. W.

Maxton, James

Stanley, Lord (Fylde)

TELLERS FOR THE NOES. ——

Mitchell, E. Rosslyn (Paisley)

Steel, Major Samuel Strang

Mr. T. Griffiths and Mr. John Robertson.

Words added.

Main Question, as amended, put, and agreed to.

Second Reading put off for six months.

North Metropolitan Electric Power Supply Company Bill [ Lords ] (by Order), Second Reading deferred till To-morrow.

Protection of Birds Bill

Order for Second Reading read.

I beg to move, "That the Bill be now read a Second time."

This is merely a short two Clause Bill. It deals with British singing birds, and is supported by every side of the House, and I would appeal to hon. Members to allow it to have a Second Reading now.

Question put, and agreed to.

Bill read a Second time, and committed to a Standing Committee.

Public Health (Scotland) Amendment Bill

Postponed Proceeding resumed on Question, "That the Bill be now read a Second time."

Question again proposed.

It being after Eleven of the Clock, the Debate stood adjourned .

Debate to be resumed upon Monday next.

The remaining Orders were read, and postponed .

Accused Persons (Identification)

Motion made, and Question proposed, "That this House do now adjourn.—[ Commander Eyres Monsell .]

I want to mention what appears to me to be an important issue which has arisen in Scotland in connection with the trial of a certain man on a charge of murder. Although it is connected with a murder trial, I make no apology for mentioning the subject here. I do not even know the man concerned, and I hardly know even the town where the crime was alleged to have been committed. All I am concerned with is that this House should be jealous that everything reasonable and proper is done to secure that any man who is under trial on any charge is given the best possible chance of defending himself on his trial. More particularly is that neces- sary on a serious charge where a man's life is at stake for alleged murder. The question that has arisen here relates to the proceedings in connection with the identification of the accused person. I happened to attend the trial, and I heard the evidence in connection with this matter. I have nothing to do with the accused man so far as his private or public life is concerned. It so happens that there is nothing against him. But even if he were a bad man, even if his character were the worst, that is all the more reason why we should see that the circumstances are clean and above-board.

I want briefly to detail the circumstances. This man was accused. He was taken to his Majesty's prison at Duke Street, and there underwent the ordinary process of identification. Four or five persons—I think five—were taken alongside him. The woman who was asked to identify him was placed behind a window, and the four or five other persons were takers along with the accused. At some distance from the persons, the woman was asked whether she could identify the accused among those who were paraded. On the first occasion she identified a person who had a slight resemblance to the accused, but he was not the accused person. She then had another try, and on the second occasion pointed out a second man who had not the slightest resemblance to the accused man. The prison governor said immediately that there was no identification of the accused person. But about seven minutes later the police went to the governor and said to him, "We think that the person asked to identify the accused was not given quite a proper chance, and, therefore, we ask to have another parade and another chance of identification." Again five or six persons were lined up and, curious to relate, though at the first parade the woman had identified two persons, neither of whom was the accused, on the second occasion, in half-a-minute, she pointed out the person who was the accused. The governor, in his evidence at the trial, which I heard, was under no illusion. This governor, who has a number of years' service, who has risen to a high position in the service, and who has performed his duties in a very efficient way.

in his evidence stated quite frankly that in the seven minutes which elapsed between the first and the second parade he was convinced there had been some tampering with the witness. So convinced was he that he wrote to the Prison Commissioners in Edinburgh stating his suspicions. This question has aroused some comment in Scotland. I desire to see every accused person, poor or rich, given every chance in his defence. It is a fearful thing, not only for persons who come into contact with the authorities, but also for the police, that any such suspicion as this should remain on the police for any length of time.

If the police have done nothing wrong, then the sooner the Secretary for Scotland makes that plain the better, and he should, before now, have issued some public statement about it. Meantime, the police are under suspicion. If the suspicion he unfounded, if after investigation this is found to be assured, then, in fairness to the police, something should have been issued in the nature of a reply to the charge. I know nothing of the man concerned. If my information be correct, his politics are not my politics. That does not matter. The question of a man's rank or station or politics has nothing to do with the case. In our Scottish system of identification and in our police system we have hitherto tried to set a high standard, but I notice a growing belief—I ask the serious attention of the Secretary for Scotland and the Lord Advocate to this, my last point—that all accused persons in this connection are not given what we in Scotland called a "fair crack of the whip." I may be wrong, but I hope the Secretary for Scotland will clear our minds of any suspicion we may have in this matter and will see that what occurred in this case in Duke Street will not occur again in the history of Scotland.

Undoubtedly such suggestions as have been made by the hon. Member are matters which everyone would wish to treat most seriously. Naturally, holding my office, no one could be more anxious than I am that justice should be administered without fear or favour, and with complete fairness in Scotland and everywhere else. With regard to the circumstances of the particular murder trial to which the hon. Member has referred, I wish to, make one or two points perfectly clear. The incident mentioned by the hon. Member occurred some time prior to the trial, while the accused was awaiting trial, in the ordinary course of procedure, in gaol. At the trial the witness, who had been given the opportunity of identification in the gaol, failed completely to identify the accused in the dock. From that moment, of course, the question of identification in the prison became absolutely irrelevant to the trial, because that witness had failed to identify the prisoner at the trial; and, of course, the important time for the question of identification is at the trial and not at the prison, though the latter point is a useful one, and has a bearing on the credibility of the evidence given by the witness at the trial.

if the witness at the time of the identification had taken up the same attitude on the second occasion, after the lapse of the seven minutes, that she took at the trial, the man would never have been the length of time he was in the prison.

I am not so sure about that, but the first point. I wish to make, as far as the result of the trial was concerned, is that this had no bearing on it at all, because the accused was discharged as the result of a unanimous verdict following on, among other things, the complete failure of the witness in question at the trial to identify the accused. That does not, of course, do away with the question raised as to the method of procedure which did in fact occur, and I wish to deal with that; but I wanted to make it quite clear that it had no ill-effect on the prisoner at the end of the day. It is quite clear to everybody that identification of a prisoner by witnesses while awaiting trial is an essential part in the getting up of a Crown case. That is a necessary thing. It is equally clear that if it is to be of use to the Crown case, which means in the interests of justice, it must be conducted as fairly as possible. It is further clear, I think, or will be when it is pointed out, that identification of a prisoner in a prison is not a very easy matter to arrange on every occasion. I will give an illustration which will bring it home at once. There was one occasion on which the accused person wore a long white beard, and the greatest difficulty was found in finding enough people with white beards in order that the prisoner might have a fair chance. That is an extreme instance, but one could find similar circumstances of the nature which would make it difficult on every occasion to get the best possible fairness in the selection of people to pass in front of the witness. It is very difficult to lay down hard-and-fast general rules in any detail, but I do not think that that is the point that is made here. The point, as I understand, is that, though the rules were fair, an unfair advantage was taken of them, because a detective, it is suggested, prompted the witness on the last occasion. It is not really a question of an unfair method of identification, but of an abuse of the method. The Governor, in his evidence, made it perfectly clear—I have a transcript here, and have read it very carefully—that his evidence was based on suspicion only—"grave suspicion" were the words he used—and not on any evidence, which really meant opportunity, coupled with the change in the witness's identification.

The matter was put to the witness herself in the witness box at the trial, and she denied completely that there had been any prompting at all. It was put to the police officer against whom the suggestion was made, and he denied it completely, and the learned Judge who tried the case, who, after all, having seen all the witnesses and heard them, was far more competent than any of us here to judge of the matter, said to me that the matter, although it was irrelevant to the trial, has been thrashed out in the Court of Justice itself, and one could well be content to leave the matter there if the House agrees with me that this is purely a matter of what happened on this individual occasion. It is not a question of unfair rules, but a question of an abuse of rules which should in the ordinary course be applied. It is a matter limited to this particular trial. It has had no prejudicial effect on the prisoner or the result of the trial, and I think that we might well be content to leave the matter where it was left by the broad publication in the newspapers of the country.

I know something about this case. I live within a stone's throw of where the murder was committed. I know the police officer concerned, and I have seen frequently in the street the man who was accused, but I think that the Lord Advocate ought to say whether or not the Government are prepared to give compensation to a mail whom they first of all arrested, then set free, then arrested again and kept in prison for months upon evidence which a jury unanimously threw out as apparently concocted, leaving this man at the Court door, having financially and economically ruined him, all his friends having had to put their last few shillings together to get evidence for him. Is the Government riot prepared to give some solatium, some ex gratiâ payment, to this man for the injustice which he has suffered?

Can the Lord Advocate give some consideration to this fact that came out in his own statement and that of the hon. Member, that the opportunity was undoubtedly present for undue pressure to be brought to bear upon the witness? Is it not possible, when such a very vital thing is taking place as a man being accused of murder, that it should be quite impossible for any undue pressure to be brought to bear upon a witness, and that the agent or some representative of the accused could be present in his interests while this important process is taking place?

I shall be very glad to reply to both questions. With regard to the latter part of the question, I shall be glad to consider the suggestion of the hon. Gentleman, but one must see the matter in all its bearings. I shall gladly consider it carefully and sympathetically, if I may say so. In regard to the other point, that is the murder charge based on serious evidence, I am afraid it would be quite contrary to the practice of the Crown to pay compensation in such a case. I must say, as everyone must know, that no case is sent to trial on the capital charge except on the instruction of the Lord Advocate—or, at any rate, it is on his direct responsibility that any such case goes to trial. I hope I have carried this duty out to the best of my ability. I should certainly not allow such a serious charge as a murder charge to be made against anyone in this country unless I had such evidence placed before me that made me feel it was a matter upon which a jury and a jury alone should adjudicate. That was my opinion in this case.

It being Half-past Eleven of the Clock , Mr. SPEAKER adjourned the House, without Question put, pursuant to the Standing Order .